Question

On December 31, 2020, Berclair Inc. had 560 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 168 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $1,050 million.

Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share.
Required: Compute Berclairs basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers ishow work please. Thanks

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Q R S T U V W Basic Numerator / Denominator = Earnings per share 1005/ 442 2.27 1005/ 448 2.24 ILII DilutedE F G H 1 к M Calculate the Basic earning per share: Note:1 In Million Shares Basic earning per share 560 = Net profit - PrefB Answer Calculate the Diluted earning per share: Proceeds received from the exercise will be used to buy back shares at mark

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