E4-8B (Income Statement, EPS) Presented below are selected ledger accounts of Tran Corporation as of December 31, 2014.

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 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.