The stockholders\' equity section of Tkachuk Corporation appears below as of Dec

Question

The stockholders' equity section of Tkachuk Corporation appears below as of December 31, 2014. Net income for 2014 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $12,177,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $365,112 were declared and paid in 2014. Dividends of $1,450,000 were declared and paid to common stockholders in 2014. Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation. (Round answers to 2 decimal places, e.g. 1.48.)

Explanation / Answer

Earnings attributable to equity shareholders:

EPS = Earnings available to equity shareholders / No. of Equity shares

= 45159708 / 10590000

= $4.26 per share.

$ Net Income after tax 37488000 + Extraordinary losses net of tax 12177000 x (1-0.34) 8036820 Net income before extraordinary loss 45524820 - Preference dividends -365112 Earnings available to equity shareholders 45159708

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