QUESTION 3 H&S Inc.'s net income for the year ended December 31, 20x5, was $1,250,000. H&S's capital structure included the following issued and outstanding shares: 500,000, $1.10, cumulative preferred shares: 80,000, $3.00 non-cumulative preferred shares; and 200,000 common shares. During 20X5, H&S did not declare or pay any dividends on the cumulative preferred shares. A dividend of $200,000 was declared for the non-cumulative preferred shares. What amount did H&S's report as its basic earnings per share for 20X5? a $2.30 ob.$5.25 $5.05 O d. $2.50