AnTok-Na Co. had share capital of two million shares 1 each fully paid up. On January 2,

2017, AnTok-Na Co. issued one million 1 ordinary shares. The full price of the new shares

was 1.50 and they were 50% paid up on issue. The dividend participation is to be 50%

until fully paid up. The shares remained 50% paid at December 31, 2017. During the year to

December 31, 2017, the average fair value of one ordinary share was 2.00. Net income

for the year was 8,000,000. What is the basic earnings per share?

a. 2.67 b. 3.05 c. 3.20 d. 4.00