E4-8B (Income Statement, EPS)

E4-8B (Income Statement, EPS) Presented below are selected ledger accounts of Tran Corporation as of
December 31, 2014.
Cash $ 125,000
Administrative expenses 250,000
Selling expenses 200,000
Net sales 1,350,000
Cost of goods sold 525,000
Cash dividends declared (2014) 50,000
Cash dividends paid (2014) 37,500
Discontinued operations (loss before income taxes) 100,000
Depreciation expense, not recorded in 2013 75,000
Retained earnings, December 31, 2013 225,000
Effective tax rate = 30%
Instructions
(a) Compute net income for 2014.
(b) Prepare a partial income statement beginning with income from continuing operations before income
tax, and including appropriate earnings per share information. Assume 10,000 shares of common
stock were outstanding during 2014.