Flyaway Travel Company Reported Net Income for 2009 in the Amount

Multiple Choice

Flyaway Travel Company reported net income for 2009 in the amount of $90,000. During 2009, Flyaway declared and paid $2,125 in cash dividends on its nonconvertible preferred stock. Flyaway also paid $10,000 cash dividends on its common stock. Flyaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on April 1, 2009. What is 2009 basic earnings per share?

A) $1.85.
B) $1.64.
C) $1.76.
D) None of these is correct