A portion of the combined statement of income and retained earnings of Snap Ltd. for the current year ended December 31, 2017 follows:

Note 1. During the year, Snap Inc. suffered a loss from discontinued operations of $400,000 after the applicable income tax reduction of $100,000.
At the end of 2017, Snap Inc. has outstanding 1.5 million common shares and 50,000 shares of preferred. On April 1, 2017, Snap Inc. issued 1 million common shares for $6 per share to help finance the loss.
Instructions
(a) Calculate the earnings per share on common shares for 2017 as it should be reported to shareholders.
(b) Assume that Snap Inc. issued a 10% stock dividend on September 1, 2017. Calculate the earnings per share on common shares for 2017 as it should be reported to shareholders.

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Income before discontinued operations Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at beginning of year $5,000,000 400,000 4,600,000 25,400,000 30,000,000 Dividends declared: On preferred shares, $4.00 per share On common shares, $2.00 per share $ 200,000 3,000,0003200,000 Retained earnings at end of year $26,800,000