Exercise NO: 10

The stockholders’ equity section of Tkachuk Corporation appears below as of\nDecember 31, 2014.\n8% preferred stock, $50 par value, authorized\n100,000 s

The stockholders’ equity section of Tkachuk Corporation appears below as of

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December 31, 2014.

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8% preferred stock, $50 par value, authorized

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100,000 shares, outstanding 90,000 shares $ 4,500,000

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Common stock, $1.00 par, authorized and issued 10 million shares 10,000,000

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Additional paid-in capital 20,500,000

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Retained earnings $134,000,000

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Net income 33,000,000 167,000,000

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$202,000,000

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Net income for 2014 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $360,000 were declared and paid in 2014. Dividends of $1,000,000 were declared and paid to common stockholders in 2014.

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Instructions

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Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation.

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