Answer:
Option (a) is correct.
Explanation:
Given that,
Operating income = $68,200 
Interest expense = $210 
Dividends paid = $320 
Depreciation = $12,400 
Other income = $2,100 
common stock = $48,500 with a par value of $1 per share 
Retained earnings = $29,700
Income before taxes:
= Operating income - Interest expense + Other income
= $68,200 - $210 + $2,100
= $70,090
Net income:
= Income before taxes - Taxes at 21%
= $70,090 - ($70,090 × 21%)
= $70,090 - $14,719
= $55,371
Shares of common stock outstanding: 
= Common stock ÷ Par value per share 
= $48,500 ÷ $1
= 48,500 shares
Earnings per share: 
= (Net income - Preferred dividend) ÷ Shares of common stock outstanding = ($55,371 - 0) ÷ 48,500
= $1.14 per share	
Therefore, the earnings per share if the tax rate is 21 percent is $1.14.