Junkyard Arts, Inc., had earnings of $316,000 for 2014. The company had 40,000 shares of common stock outstanding during the year. In addition, the company issued 15,000 shares of $50 par value preferred stock on January 9, 2014. The preferred stock has a dividend of $1.60 per share. There were no transactions in either common or preferred stock during 2014.
Determine the basic earnings per share for Junkyard Arts.