The financial statements for Highland Publications Corporation included the following selected information:

Common Stock $1,600,000

Retained earnings - end of year $900,000

Net Income $1,000,000

Shares issued 90,000

Shares outstanding 80,000

Dividends declared and paid $800,000

Paid in Capital ??

The common stock was sold at a price of $20 per share

a) What is the amount of capital in excess of par?

(Hint: Cash received = Common Stock + PIC)

b) What was the amount of retained earnings at the beginning of the year?

c) How many shares are in treasury stock?

d) Compute earnings per share.