Question
The shareholders equity section of Bridgeport Corporation as at December 31, 2017, follows: 6% cumulative preferred shares, 100,000 shares authorized, 85,000 shares outstanding $4,540,000 Common
The shareholders’ equity section of Bridgeport Corporation as at December 31, 2017, follows:
6% cumulative preferred shares, 100,000 shares authorized, 85,000 shares outstanding | $4,540,000 | |
Common shares, 18 million shares authorized and issued | 18,000,000 | |
Contributed surplus | 10,000,000 | |
32,540,000 | ||
Retained earnings | 173,000,000 | |
$205,540,000 |
Net income of $26 million for 2017 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of $16 million (before tax) relating to the operations of a business segment that is to be discontinued.
Calculate earnings per share information as it should appear in the financial statements of Bridgeport Corporation for the year ended December 31, 2017.
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