The following information relates to Foster stock used in capital transactions:

In the second quarter of Year $1,$ Foster issued $600,000$ shares of convertible preferred stock for assets in a purchase transaction. The quarterly dividend on the convertible stock is $$0\mathrm{.}05$ per share, payable at the end of each quarter. Each share is convertible into one share of common stock.

Common shares outstanding at January $1,$ Year $2,$ were $3,300,000.$

$300,000$ shares of common stock were issued for cash on March $31,$ Year $2.$

The average market price for common stock for the first six months of Year $2$ was $$59$ per share.

Additionally:

At December $31$st of year $1,$ Foster Co$.$ issued $4\%$ convertible bonds with a principal of $$10,000,000,$ due in $20$ years, at $$1,000($par$).$ Interest is payable annually on December $31$st$.$ Each $$1,000$ bond is convertible into $20$ shares of common stock.

Foster did not declare or pay any dividends on its common stock for Year $2.$

Foster's quarterly net income for Year $2$ was:$$

Year $2$

$1$st quarter $$3,000,000$

$2$nd quarter $3,600,000$

$3$rd quarter $2,900,000$

$4$th quarter $3,100,000$