Flyaway Travel Company Reported Net Income for 2016 in the Amount

Multiple Choice

Flyaway Travel Company reported net income for 2016 in the amount of $90,000.During 2016,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 1,2016.What is 2016 basic earnings per share?

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