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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
(Earnings per Share) The stockholders’ equity section of Sosa Corporation appears below as of December 31, 2012.
|
6% Â 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 |
| Â | Â |
$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
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