The Sailor Jerry Company had 50,000 shares of common stock outstanding on January 1st. On April 1st, the company issued 20,000 shares of common stock. The company also has stock options outstanding that can be exercised for 5,000 common shares at an exercise price of $12 per share. The options were outstanding for the entire year but none were exercised. The end-of-year market price of the common stock was $13 per share while the average price for the year was $15 per share. The company reported net income of $266,500 for the year. Basic earnings per share for the year is closest to:

A)$4.10 B)$3.86 C)$3.81 D)$4.04