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

	December 31,
	2021		2020
Common stock	140000 shares		140000 shares
Convertible preferred stock	15600 shares		15600 shares
7% convertible bonds	$2450000		$2450000

During 2021, Waterway paid dividends of $0.80 per share on its common stock and $3 per share on its preferred stock. The preferred stock is convertible into 30000 shares of common stock. The 7% convertible bonds are convertible into 75100 shares of common stock. The net income for the year ended December 31, 2021, was $398000. Assume that the income tax rate was 32%. What should be the basic earnings per share for the year ended December 31, 2021, rounded to the nearest penny?

$2.51

$1.93

$1.79

$2.84