A company had the following outstanding shares as of January 1, year 2:

Preferred stock, $60 par,

4%, cumulative

15,000 shares

Common stock, $3 par

45,000 shares

On April 1, year 2, the company sold 7,500 shares of previously unissued common stock. No

dividends were in arrears on January 1, year 2, and no dividends were declared or paid during

year 2. Net income for year 2 totaled $856,000. What amount is basic earnings per share for

the year ended December 31, year 2?