The following information is provided for QMark Inc. Calculate basic the basic EPS for 2015.

5% cumulative preferred shares, 50,000 shares outstanding shares issued on January 1, 2014

100,000 common shares outstanding shares issued on January 1, 2014

Income from continuing operations before tax $270,000

Common dividends declared $25,000 in 2015

No preferred share dividends declared in 2014.

Effective tax rate 40%

A,1.57

B,1.60

C) 2.65

D,2.68