14 2: Analyze and Record Transactions for the Issuance and Repurchase of Stock Business LibreTexts
To calculate earnings available for common stockholders, we need to know the corporation's net income after income tax, which is $10,000. This is the starting point for determining how much of the company's earnings will be distributed to common stockholders. Book value can be calculated in various ways, including the book value of an asset, bonds payable, a corporation, common stock, and preferred stock. A 2-for-1 stock split, for example, will result in 200,000 shares outstanding if a corporation has 100,000 shares outstanding before the split. These 10,000 shares of the...