During 2012, Blue Corporation produced net income of $1,550,000. The average number of shares of common stock outstanding for the year was 498,000.

Calculate Blue's earnings per share for the year. Round your answer to two decimal places. $ _________________

Which of the following best represents what Blue Corporation's earnings per share indicates:

A) Represents the profits for every share of common stock outstanding during the year.

B) Represents the profits for every share of common stock issued during the year.

C) Represents the profits for every share of common stock authorized during the year.

D) Represents the profits for every share of treasury stock purchased during the year.