Johnson Alarm Systems had 800,000 of retained earnings on December 31, 2008. the company paid common dividends of 60,000 in 2008 and had retained earnings of 640,000 on December 31, 2007.

how much did Johnson earn during 2008, and what would earnings per share be if 50,000 shares of common stock were outstanding?

To calculate the earnings of Johnson Alarm Systems in 2008, we need to add the common dividends paid to the retained earnings from the previous year and then subtract the retained earnings on December 31, 2008.

Retained Earnings on December 31, 2007 = $640,000
Common Dividends Paid in 2008 = $60,000
Retained Earnings on December 31, 2008 = $800,000

Earnings in 2008 can be calculated as follows:
Earnings in 2008 = Retained Earnings on December 31, 2008 - (Retained Earnings on December 31, 2007 + Common Dividends Paid in 2008)

Earnings in 2008 = $800,000 - ($640,000 + $60,000)
Earnings in 2008 = $800,000 - $700,000
Earnings in 2008 = $100,000

Therefore, Johnson Alarm Systems earned $100,000 during 2008.

Now, let's calculate the earnings per share (EPS) if 50,000 shares of common stock were outstanding. To do this, we need to divide the earnings by the number of shares.

EPS = Earnings / Number of Shares

EPS = $100,000 / 50,000
EPS = $2

Therefore, the earnings per share (EPS) would be $2 if 50,000 shares of common stock were outstanding.