At January 1, 2014, JR Company’s outstanding shares included the following.

200,000 shares of $100 par value, 6% cumulative preferred stock (issued on January 1, 2012)

600,000 shares of $1 par value common stock

Net income for 2014 was $2,689,000. No cash dividends were declared or paid during 2012 or 2013. On March 31, 2014, all preferred dividends in arrears for 2012 and 2013 were paid. Then, on July 1, 2014, the company declared and distributed a 10% stock dividend on common shares. On February 1, 2015, the company declared and paid the 2014 preferred dividend and a $0.10 per share cash dividend on the common shares.

On March 1, 2014, 800,000 shares of common stock were sold for $3 per share, and on October 1, 2014, 50,000 shares of common stock held as treasury stock were sold for $4 per share.

Instructions

Compute earnings per share for 2014. Assume that financial statements for 2014 were issued in March 2015.