(Earnings per Share) The stockholders’ equity section of Sosa Corporation appears below as of December 31, 2012.
|
6% preferred stock, $50 par value, authorized |
$4,500,000 |
|
|
Common stock, $1 par, authorized and issued 10 million shares |
10,000,000 |
|
|
Additional paid in capital |
20,500,000 |
|
|
Retained earnings |
$134,000,000 |
|
|
Net income |
33,000,000 |
167,000,000 |
|
$202,000,000 |
Net income for 2012 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $12,000,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $270,000 were declared and paid in 2012. Dividends of $1,000,000 were declared and paid to common stockholders in 2012.
Instructions
Compute earnings per share data as it should appear on the income statement of Sosa Corporation.