FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A portion of the combined statement of income and retained earnings of Seminole Inc. for the current year follows.

Income from continuing operations  
$15,000,000
Loss from discontinued operations, net of applicable income tax (Note 1)  
  1,340,000
Net income  
13,660,000
Retained earnings at the beginning of the year  
 83,250,000
   
96,910,000
Dividends declared:    
00On preferred stock—$6.00 per share
$   300,000
 
00On common stock—$1.75 per share
14,875,000
   15,175,000
Retained earnings at the end of the year  
$81,735,000
Note 1. During the year, Seminole Inc. suffered a major loss from discontinued operations of $1,340,000 after applicable income tax reduction of $1,200,000.

At the end of the current year, Seminole Inc. has outstanding 8,500,000 shares of $10 par common stock and 50,000 shares of 6% preferred. On April 1 of the current year, Seminole Inc. issued 1,000,000 shares of common stock for $32 per share to help finance the loss from discontinued operations.

Instructions

Compute the earnings per share on common stock for the current year as it should be reported to stockholders.

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