On December 31, 2020, the Snoopy Co. had 100,000 shares of common stock issued and outstanding. On July 1, 2021, the company sold 20,000 additional shares for cash. Snoopy's net income for the year ended December 31, 2021 was $650,000. During 2021, Snoopy declared and paid $89,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share?

Question 8 options:

	$5.91.
	$5.10.
	None of the answers provided is correct.
	$5.61.