Information concerning the capital structure of Crane Corporation is as follows:

	2024	2025
Common Stock	157 shares	157 shares
Convertible preferred stock	15200 shares	15200 shares
6% convertible bonds	2500000	2500000

In 2025, Crane paid dividends of $0.7 per share on its common stock and $2 per share on its preferred stock. The preferred stock is convertible into 31000 shares of common stock. The 6% convertible bonds are convertible into 74400 shares of common stock. The net income for the year ended December 31, 2025, was $403000. Assume that the income tax rate was 30%. What should be the basic earnings per share for the year ended December 31, 2025?

a) $1.67

b) $2.37

c) $1.85

d) $2.57