1. For the year ended December 31, 2013, Norstar Industries reported net income of $655,000. At January 1, 2013, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2013:

Apr. 30 Sold 60,000 shares in a public offering.

May 24 Declared and distributed a 5% stock dividend.

June 1 Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary.

Required:

Compute Norstars earnings per share for the year ended December 31, 2013.

2.

On December 31, 2012, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2013, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2013. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2013, was $150 million. The income tax rate is 40%.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2008. The options are exercisable as of September 13, 2012, for 30 million common shares at an exercise price of $56 per share. During 2013, the market price of the common shares averaged $70 per share.

$62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value in 2009.

Required:

Compute Berclairs basic and diluted earnings per share for the year ended December 31, 2013.