At December 31, 2016, Tantalum Corp.had 300,000 common shares outstanding.No common shares were issued during 2017; however, on January 1, 2017, Terrier issued 200,000 non-cumulative, non-convertible preferred shares.During 2017, Terrier paid cash dividends of $100,000 to the common shareholders and $80,000 to the preferred shareholders.Net income for calendar 2017 was $300,000.Basic earnings per share for 2017 would be

Question

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First, we need to calculate the dividends paid to common shareholders per share: $100,000 / 300,000 shares = $0.33 per share.
Next, we need to calculate the dividends paid to preferred shareholders per share: $80,000 / 200,000 shares = $0.40 per share.
We need to subtract the dividends paid to preferred shareholders from the net income to calculate the earnings available to common shareholders: $300,000 - $80,000 = $220,000.
Finally, we divide the earnings available to common shareholders by the number of common shares outstanding: $220,000 / 300,000 shares = $0.73 earnings per share. Therefore, the answer is B.