26. Li Travel Company reported net income for 2019 in the amount of $900,000. During 2019, Li declared and paid $21,250 in cash dividends on its nonconvertible preferred stock. Li also paid $10,000 cash dividends on its common stock. Li had 400,000 common shares outstanding from January 1 until 100,000 new shares were sold for cash on April 1, 2019. What is 2019 basic earnings per share?

a. $1.85 b. $1.64 c. $1.76 d. None of these answer choices is correct.