A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows.

During the year, Pierson Inc. had a loss from discontinued operations of \($1\),340,000 after applicable income tax reduction of \($1\),200,000.
At the end of the current year, Pierson Inc. has outstanding 8,000,000 shares of \($10\) par ordinary shares and 50,000 shares of 6% preference shares.
On April 1 of the current year, Pierson Inc. issued 1,000,000 ordinary shares for \($32\) per share to help finance the loss on discontinued operations.
Instructions Compute the earnings per share on ordinary shares for the current year as it should be reported to shareholders.

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Income from continuing operations Loss on discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preference shares-$6.00 per share On ordinary shares-$1.75 per share Retained earnings at the end of the year $15,000,000 1,340,000 13,660,000 83,250,000 96,910,000 $ 300,000 14,875,000 15,175,000 $81,735,000