1. Bs net income for 2016 was $1,385,000. Throughout 2016, B had 575,000 shares of $1 par value common stock outstanding and 30,000 shares of 3%, $100 par value, cumulative preferred stock outstanding. During 2016, B distributed $180,000 of dividends on its preferred stock and $115,000 of dividends on its common stock. Compute Bs basic earnings per share. ROUND TO NEAREST PENNY.