At December 31, 2021 and 2020, Cow Co. had 100,000 shares of common stock and 5,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $500,000. For 2021, basic earnings per share was:

Multiple Choice

$5.00

$4.75

$4.50

$2.50

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