Caspela Corp. had the same capital structure in 2017 and 2018, 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 2018. No preferred dividends were paid during 2017, but Caspela paid $20,000 in preferred dividends in 2018. In its 2018 income statement what amount should Caspela report as basic earnings per share?

Multiple Choice

$2.37

$2.30

$2.35

$2.32