Washington Enterprises had net income for 2016 of $103,000

Washington had 39,000 shares of common stock outstanding at the beginning of the year and 43,000 shares of common stock outstanding at the end of the year. There were 6,000 shares of preferred stock outstanding all year. During 2016, Washington declared and paid preferred dividends of $29,000. What is Washington's earnings per share? (Round the answer to two decimal places.)
A) $2.51
B) $2.40
C) $1.80
D) $1.72

C .C) Average number of common shares outstanding: (39,000 + 43,000 ) / 2 = 41,000
Earnings Per Share = (Net income - Preferred dividends) / Average number of common shares outstanding
Earnings Per Share = ($103,000 - $29,000 ) / 41,000
Earnings Per Share = $1.80