Please show work and explanation. Thank you

On December 31, 2015, the Frisbee Company had 250,000 shares of common stock issued and outstanding. On March 31, 2016, the company sold 50,000 additional shares for cash. Frisbee's net income for the year ended December 31, 2016, was $700,000. During 2016, Frisbee declared and paid $80,000 in cash dividends on its nonconvertible preferred stock. What is the 2016 basic earnings per share (rounded)? $2.80. $3.10. $3.50. $2.16