E4-10B (Earnings Per Share) The stockholders’ equity section of Udokah Corporation appears below as
of December 31, 2014.
8% cumulative preferred stock, $10 par value, authorized
100,000 shares, outstanding 90,000 shares $ 900,000
Common stock, $0.20 par, authorized and issued 10 million shares 2,000,000
Additional paid-in capital 4,100,000
Retained earnings $26,800,000
Net income 6,600,000 33,400,000
$40,400,000
Net income for 2014 reflects a total effective tax rate of 34%. Included in the net income figure is a
loss of $3,600,000 (before tax) as a result of a major casualty.
Instructions
Compute earnings per share data as it should appear on the income statement of Udokah Corporation.