On January 1, 2020, Warren Corporation had 800,000 shares of common stock outstanding. On March 1, the corporation issued 200,000 new shares to raise additional capital. A 10% stock dividend was declared on May1. On July 1, the corporation declared and issued a 3-for-1 stock split. On October 1, the corporation purchased on the market 300,000 of its own outstanding shares and retired them.

*10,000 shares of 8%, $100 par value, cumulative, preferred stock were outstanding. (convertible into 40,000 shares of common). No dividends were declared or paid on either the preferred or common stock in 2020 .

*Net income for 2020 was $4,700,000. Tax rate was 30%.

*Convertible Bonds, 9%, $300,000 face amount , convertible into 25, 000 common shares

*Also outstanding at January 1 , 2020 were incentive stock options granted to key executives on January 1, 2015. The options are exercisable as of January 1, 2019, for 40,000 common shares at an exercise price of $20 per share . During 2020, the average market price of the common shares was $50 per share.

The basic earnings per share is

		A. $1.51
		B. $ 1.48
		C. $2.08
		D. $1.00