A Corporation reported net income for 2018 of $200,000. Co. had 100,000 shares of common stock outstanding all year. In addition, Co. had 20,000 shares of $25 par value preferred stock outstanding all year that paid a 5% dividend. The basic earnings per share for 2018 is:

Group of answer choices

$1.67 per share.

$1.75 per share.

$1.46 per share.

$2.00 per share.