1) For the year ended December 31, 2016, Norstar Industries reported net income of $915,000. At January 1, 2016, the company had 760,000 common shares outstanding. The following changes in the number of shares occurred during 2016:

Apr. 30	Sold 35,000 shares in a public offering.
May 24	Declared and distributed a 5% stock dividend.
June 1	Issued 30,000 shares as part of the consideration for the purchase of assets from a subsidiary.

Required:

Compute Norstar's earnings per share for the year ended December 31, 2016

Numerator/ Denominator = Earnings per share

2) On December 31, 2015, Berclair Inc. had 225 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair purchased 30 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2016. four million treasury shares were sold on October 1. Net income for the year ended December 31, 2016, was $200 million.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2011. The options were exercisable as of September 13, 2015, for 30 million common shares at an exercise price of $35 per share. During 2016, the market price of the common shares averaged $70 per share.

The options were exercised on September 1, 2016.

Required:

Compute Berclairs basic and diluted earnings per share for the year ended December 31, 2016.

NumeratorD enominator | = Earnings Earnings per Share Basic EPS Diluted EPS