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At December 31, 2013, Shiga Naoya Corporation had the following stock outstanding.
During 2014, Shiga Naoya did not issue any additional common stock. The following also
occurred during 2014.
Compute earnings per share data as it should appear in the 2014 income statement of Shiga
Naoya Corporation.
10% cumulative preferred stock, $100 par, 109,340 shares $10,934,000
Common stock, $5 par, 4,084,800 shares 20,424,000
Solution
Earnings After Tax = (Income from Continuing operations before tax - loss from discontinued
operations before tax )*(1-tax rate)
=(23499000-3280000)*(1-.35)
=20219000*0.65
=13142350
Earnings per share = (Earnings After tax- preference dividends)/ total number of equity shares
= (13142350-1093400)/4084800
=$ 2.95/ share
At December 31- 2013- Shiga Naoya Corporation had the following stock (1).docx

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  • 1. At December 31, 2013, Shiga Naoya Corporation had the following stock outstanding. During 2014, Shiga Naoya did not issue any additional common stock. The following also occurred during 2014. Compute earnings per share data as it should appear in the 2014 income statement of Shiga Naoya Corporation. 10% cumulative preferred stock, $100 par, 109,340 shares $10,934,000 Common stock, $5 par, 4,084,800 shares 20,424,000 Solution Earnings After Tax = (Income from Continuing operations before tax - loss from discontinued operations before tax )*(1-tax rate) =(23499000-3280000)*(1-.35) =20219000*0.65 =13142350 Earnings per share = (Earnings After tax- preference dividends)/ total number of equity shares = (13142350-1093400)/4084800 =$ 2.95/ share