Exercise 16-19 A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows. Income before extraordinary item $15,260,000 Extraordinary loss, net of applicable income tax (Note 1) 1,417,000 Net income 13,843,000 Retained earnings at the beginning of the year 83,400,000 97,243,000 Dividends declared: On preferred stock$6.00 per share $378,000 On common stock$1.75 per share 14,950,000 15,328,000 Retained earnings at the end of the year $81,915,000 Note 1. During the year, Pierson Inc. suffered a major casualty loss of $1,417,000 after applicable income tax reduction of $1,260,000. At the end of the current year, Pierson Inc. has outstanding 8,361,000 shares of $10 par common stock and 63,000 shares of 6% preferred. On April 1 of the current year, Pierson Inc. issued 1,058,000 shares of common stock for $33 per share to help finance the casualty. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, e.g. $2.55.) Pierson Inc. Income Statement For the year ended December 31, 2012 $ $