P14-7A The capital structure of Midori Flooring, Inc., at December 31, 20X6. included 20.000 shares of $1.25 preferred stock and 44,000 shares of common stock. Common shares outstanding during 20X7 were 44,000 January through May, 50.000 June through August, and 60,500 September through December. Income from continuing operations during 20X7 was $94,100. The company discontinued a segment of the business at a gain of $6.630, and also had an extraordinary gain of $33,660. Midori's board of directors restricts $100,000 of retained earnings for contingencies. Required 1. Compute Midori's earnings per share. Start with income from continuing operations. Income and loss amounts are net of income tax. 2. Show two ways of reporting Midori's retained earnings restriction. Retained earnings at December 31, 20X6. was $107,000, and Midori declared cash dividends of $29,000 during 20X7.