Reporting Discontinued Operations$-$Disposal in Subsequent Year

On October $1$ of the current year, Blain Company approved a formal plan to sell the McKay

Division, considered a component of the business. The sale will occur on March $31$ of the

following year. The division had operating income of $$700,000($pretax$)$ for the year ended

December $31,$ but expects to incur an operating loss of $$140,000$ for the first quarter of

next year. Blain determines the carrying value and fair value $($net of selling costs$)$ of the

McKay Division to be $$7,000,000$ and $$6,720,000,$ respectively, on December $31.$ Blain's tax

rate for the year is $25\%.$ Weighted average number of common shares outstanding in the

current year is $400,000.$

Required

a$.$ Assume Blain Company's income from continuing operations is $$3,220,000($after

tax in the current year. Prepare a partial income statement beginning with income

from continuing operations. Include earnings per share disclosures.

Use a negative sign to indicate a loss.

Enter the answers for per share amounts in dollars and cents, rounded to the

nearest penny.