At December 31, 2013, Shiga Naoya Corporation had the following stock outstanding.

10% cumulative preferred stock, $100 par, 108,110 shares		$10,811,000
Common stock, $5 par, 4,042,000 shares		20,210,000

During 2014, Shiga Naoya did not issue any additional common stock. The following also occurred during 2014.

Income from continuing operations before taxes		$24,008,000
Discontinued operations (loss before taxes)		$3,245,000
Preferred dividends declared		$1,081,100
Common dividends declared		$2,247,000
Effective tax rate		35	%

Compute earnings per share data as it should appear in the 2014 income statement of Shiga Naoya Corporation.

=====================================================================================

EXERCISE 2:

Below is the Retained Earnings account for the year 2014 for Acadian Corp.

Retained earnings, January 1, 2014				$260,971
Add:
Gain on sale of investments (net of tax)		$44,571
Net income		87,871
Refund on litigation with government, related to the year 2011 (net of tax)		24,971
Recognition of income earned in 2013, but omitted from income statement in that year (net of tax)		28,771		186,184
				447,155
Deduct:
Loss on discontinued operations (net of tax)		38,371
Write-off of goodwill (net of tax)		63,371
Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2014 (net of tax)		26,571
Cash dividends declared		35,371		163,684
Retained earnings, December 31, 2014				$283,471

Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2014 to compute net income