At January 1, 2011, Canaday Corporation had outstanding the following securities:

600 million common shares

20 million 6% cumulative preferred shares, $50 par

8% convertible bonds, $2,000 million face amount, convertible into 80 million common shares

The following additional information is available:

• On September 1, 2011, Canaday sold 72 million additional shares of common stock.

• Incentive stock options to purchase 60 million shares of common stock after July 1, 2010, at $12 per share were outstanding at the beginning and end of 2011. The average market price of Canaday's common stock was $18 per share during 2011.

• Canaday's net income for the year ended December 31, 2011, was $1,476 million. The effective income tax rate was 40%.

Required:

1. Calculate basic earnings per common share for the year ended December 31, 2011.

2. Calculate the diluted earnings per common share for the year ended December 31, 2011.