Orr Co$.$ had $500,000$ shares of common stock issued and outstanding at December $31,20$X$1.$ No common stock was issued or

purchased during the year. On January $1,20$X$2,$ Orr issued $50,000$ shares of $5\%,$$$100$ par non$-$participating non$-$convertible preferred

stock. In $20$X$2,$ Orr declared and paid cash dividends of $$400,000.$ Net income for the year ending December $31,20x2$ was

$$1,350,000.$ Orr will report basic earnings per common share on its income statement for the year ending $20$X$2$ of

$$2\mathrm{.}70.$

$$2\mathrm{.}20.$

$$2\mathrm{.}40.$

$$1\mathrm{.}90.$