Caspela Corp. had the same capital structure in 2014 and 2015, consisting of the following:

Preferred stock, $12 par, 5% cumulative,

20,000 shares issued and outstanding $ 240,000

Common stock, $6 par, 250,000 shares

issued and outstanding 1,500,000

Caspela reported net income of $600,000 for 2014. No preferred dividends were paid during 2014, but Caspela paid $20,000 in preferred dividends in 2015. In its 2015 income statement what amount should Caspela report as basic earnings per share?

a. $2.30

b. $2.32

c. $2.35

d. $2.37