Acct 2102 Homework Problem Chap 17

1. Alamo, Inc. had 480,000 shares of common stock outstanding on January 1, 2010. An additional 150,000 shares were issued on May 1, 2010, and 60,000 shares were repurchased on October 1, 2010. The weighted average number of shares outstanding during 2010 was: 565,000

2. Jackson, Inc. had 360,000 shares of common stock outstanding on January 1, 2010 and issued 60,000 additional shares on July 1, 2010. There was no preferred stock. If net income for the year ended December 31, 2010 was $1,072,500, the earnings per share were: $2.75

3. Advance Systems, Inc. had 840,000 shares of common stock outstanding on January 1, 2010, and repurchased 75,000 shares on June 1, 2010. Net income for the year ended December 31, 2010, was $2,662,625, and preferred stock dividends for the year amounted to $35,000. The earnings per share for 2010 were: $3.30

4. Kaiser Corporation sold its Telecommunications Division during 2010. The company's accountants determined that the division earned $850,000 of pre-tax income during 2010 prior to disposal. The sale resulted in a $370,000 loss before taxes. Kaiser's income from continuing operations for 2010 amounted to $4,138,000. The company's effective tax rate is 35%. What is Kaiser Corporation's net income for 2010? $4,450,000

James Company had the following income statement for the year ended December 31, 2010:

|Net sales |$600,000 |

|Costs and expenses | |

|Cost of goods sold |400,000 |

|Selling, general, and administrative expenses |80,000 |

|Interest expense |5,000 |

|Income tax | 35,000 |

|...