On January 1, 2010, Tuscany Corporation purchased 1,000 shares of treasury stock. Other information regarding Tuscany Corporation is provided below.

Compute

(a) Return on common stockholders’ equity for each year and

(b) Earnings per share for each year, and

(c) Discuss the changes in each.

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2009 2010 Net income Dividends on preferred stock Dividends on common stock Weighted average number of common shares outstanding Common stockholders' equity beginning of year Common stockholders' equity end of year $210,000 $200,000 $30,000 $20,000 $25,000 9,000 $750,000 $830,000 10,000 $600,000 $750,000