Flyaway Travel Company reported net income for 2011 in the amount of $90,000. During 2011, Flyaway declared and paid $2,125 in cash dividends on its nonconvertible preferred stock. Flyaway also paid $10,000 cash dividends on its common stock. Flyaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on April 1, 2011. What is 2011 basic earnings per share?
A. $1.85.
B. $1.64.
C. $1.76.
D. None of these is correct