During 2021, Lance Corporation had 900,000 shares of common stock and 50,000 shares of 6% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Lance declared and paid cash dividends of $300,000 and $150,000 to common and preferred shareholders, respectively, during 2021.

On January 1, 2020, Lance issued $2,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares.

Lance's net income for the year ended December 31, 2021, was $6 million. The income tax rate is 20%.

What is Lances basic earnings per share for 2021, rounded to the nearest cent?

A. $5.29.

B. $5.57.

C. $6.50

D. None of these answer choices are correct..