The stockholders equity section of Hendly Corporation appears below as of December 31, 2020. 8% preferred stock,
Question:
The stockholders’ equity section of Hendly Corporation appears below as of December 31, 2020.
8% preferred stock, $50 par value, authorized
100,000 shares, outstanding 90,000 shares..................................................$ 4,500,000
Common stock, $1.00 par, authorized and issued 10 million shares..........10,000,000
Additional paid-in capital...................................................................................20,500,000
Retained earnings (includes 2020 net income of $33,000,000)..................167,000,000
Net income......................................................................................................$202,000,000
Net income for 2020 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a non-recurring major casualty. Preferred stock dividends of $360,000 were declared and paid in 2020. Dividends of $1,000,000 were declared and paid to common stockholders in 2020.
Instructions
Compute earnings per share data as it should appear on the income statement of Hendly Corporation.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel