Information concerning the capital structure of Bonita Industries is as follows:

	December 31,
	2021		2020
Common stock	145000 shares		145000 shares
Convertible preferred stock	15600 shares		15600 shares
6% convertible bonds	$2480000		$2480000

During 2021, Bonita paid dividends of $0.90 per share on its common stock and $3 per share on its preferred stock. The preferred stock is convertible into 29100 shares of common stock. The 6% convertible bonds are convertible into 74900 shares of common stock. The net income for the year ended December 31, 2021, was $403000. Assume that the income tax rate was 28%. What should be the basic earnings per share for the year ended December 31, 2021, rounded to the nearest penny?

$2.00

$1.79

$2.46

$2.78