Net income for 2012 reflects a total effective tax rate of


Question - The stockholders' equity section of Sosa Corporation appears below as of December 31, 2012.

6% preferred stock, $50 par value, authorized

100,560 shares, outstanding 90,560 shares $4,528,000

Common stock, $1 par, authorized and issued 10,850,000 million shares  10,850,000

Additional paid-in capital  20,513,000

Retained earnings  $134,160,000

Net income 38,544,000

172,704,000 $208,595,000

Net income for 2012 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $12,852,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $271,680 were declared and paid in 2012. Dividends of $1,420,000 were declared and paid to common stockholders in 2012.

Compute earnings per share data as it should appear on the income statement of Sosa Corporation.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Net income for 2012 reflects a total effective tax rate of
Reference No:- TGS02620296

Now Priced at $25 (50% Discount)

Recommended (94%)

Rated (4.6/5)