Davies Inc. had 1,400,000 outstanding shares of common stock at the beginning of the current year (January 1). On October 1, Davies issued 600,000 additional common shares. Davies also had outstanding for the entire year 12,000 shares of 5% cumulative preferred stock with a par value of $80 per share. Davies had net income for the year of $2,000,000. Basic earnings per share for the year is

$0.98 per share

$1.00 per share

$1.26 per share

$1.30 per share

$1.43 per share