1. During the current year, Torino Corporation suffered a $1,290,000 loss when its factory was severely damaged in an earthquake. Earthquakes are not common in this area. Assuming the corporate income tax rate is 30%, what amount will Torino report as a non-recurring loss on its income statement for the current year?

• $1,290,000

• $387,000

• Nothing, since this does not qualify as a non-recurring item.

• $903,000

2. Platinum Company reports net income of $770,000 and declared a cash dividend of $2.3 per share on each of its 220,000 shares of common stock outstanding. What are earnings per share?

• $5.80 per share

• $2.30 per share

• $3.50 per share

• $1.20 per share

2. On January 1, Year 2, Carleton Corporation had 60,000 shares of $5 par value common stock outstanding. On March 31, Year 2, Carleton issued an additional 20,000 shares in exchange for a building. What number of shares will be used in the computation of earnings per share for Year 2?

• 80,000

• 75,000

• 160,000

• 60,000

3. At the beginning of the current year, Elite Corporation had 180,000 shares of $1 par common stock outstanding and had retained earnings of $4,600,000. During the year, the company earned $1,655,000, declared a 10% stock dividend when the price of stock was $28 per share, and paid a year-end cash dividend of $3 per share. (The cash dividend was paid after the stock dividend had been distributed.) What was Elite Corporation's retained earnings at the end of the year?

• $5,207,400

• $5,157,000

• $5,751,000

• $3,502,000