For the year ended December 31, Southern Supply had net sales of $3,875,000, costs and other expenses (including income tax) $3,100,000, and an extraordinary gain (net of income tax) of $210,000.

a. Prepare a condensed income statement (including earnings per share), assuming that 620,000 shares of common stock were outstanding throughout the year.

b. Which earnings per share figure is used in computing the price-earnings ratio for Southern Supply reported in financial publications such as The Wall Street Journal? Explain briefly.