Tery Co had the following ordinary share activity during the current year:

		Shares
January 1	Outstanding	500,000
March 1	New shares issued	60,000
June 1	2 for 1 split	560,000
November 1	Treasury shares acquired	48,000

Outstanding throughout the year are the 200,000 cumulative preference shares with a par value of $20. The preference dividend rate is 10%. The entity reported a net income of $5,860,000 for the current year.

1. Determine the average ordinary shares outstanding.
2. Determine the basic earnings per share.