Presented below is information related to Starr Company.

1. Net Income [including a discontinued operations gain (net of tax) of $70,000] $220,000

2. Capital Structure

a. Cumulative 5% preferred stock, $100 par,

6,000 shares issued and outstanding $600,000

b. $10 par common stock, 74,000 shares outstanding on January 1.

On April 1, 40,000 shares were issued for cash. On October 1,

16,000 shares were purchased and retired. $1,000,000

c. On January 2 of the current year, Starr purchased Oslo Corporation.

One of the terms of the purchase was that if Oslo net income for the

following year is $2,400,000 or more, 50,000 additional shares would

be issued to Oslo stockholders next year. Oslos net income for the current year was $2,600,000.

3. Other Information

a. Average market price per share of common stock during entire year $30

b. Income tax rate 30%

Instructions

Compute earnings per share for the current year.