Net income	$3,374,960
Common shares issued and outstanding:
Beginning of year	1,285,000
End of year	1,200,000
Average	1,242,500
Earnings per share:
$3,374,960	= $2.72 per share
1,242,500

Activities in common shares during the year were as follows.

Outstanding, Jan. 1	1,285,000
Treasury shares acquired, Oct. 1	250,000
Shares reissued, Dec. 1	165,000
Outstanding, Dec. 31	1,200,000

Assume the same facts as those presented above, except that options had been issued to purchase 140,000 shares of common stock at $10 per share. These options were outstanding at the beginning of the year, and none had been exercised or canceled during the year. The average market price of the common shares during the year was $25, and the ending market price was $35. What earnings per share amounts will be reported?