Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2008.

Cash....................................................................................................$ 50,000

Administrative expenses..............................................................100,000

Selling expenses................................................................................80,000

Net sales.............................................................................................540,000

Cost of goods sold.........................................................................210,000

Cash dividends declared (2008)..................................................20,000

Cash dividends paid (2008)...........................................................15,000

Discontinued operations (loss before income taxes)..........40,000

Depreciation expense, not recorded in 2007..........................30,000

Retained earnings, December 31, 2007.....................................90,000

Effective tax rate 30%

Instructions

(a) Compute net income for 2008.

(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2008.