Burke Company shows the following condensed income statement information for the year ended December 31, 2010:
Income before extraordinary items $29,936
Less: Extraordinary loss (net of income tax credit) (2,176)
Net Income $27,760
The company declared dividends of $6,000 on preferred stock and $17,280 on common stock. At the beginning of 2010, 10,000 shares of common stock were outstanding. On May 4, 2010 the company issued 2,000 additional common shares and on October 19, 2010 it issued a 20% stock dividend on its common stock. The preferred stock is not convertible.
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| 1. Computer the 2010 basic earnings per share. |
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| 2. Show the 2010 income statement disclosure of basic earnings per share. |
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3. Draft a related note to accompany the 2010 financial statements.
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Basic earnings per share |
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Basic earnings per share related to income before extraordinary items = |
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Income before=
extraordinary items=
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Extraordinary loss= |
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