1.During 2021, its first year of operations, McCollum Tool Works entered into the following transactions relating to shareholders equity. The corporation was authorized to issue 100 million common shares, $1 par per share.

Jan.		2		Issued 35 million common shares for cash.
		3		Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2022 based on the earnings of McCollum in 2022. If net income exceeds $140 million, the president will receive 1 million shares; 2 million shares if net income exceeds $150 million.
Mar.		31		Issued 4 million shares in exchange for plant facilities.

Net income for 2021 was $148 million. Required:

Compute basic and diluted earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Numerator/Denominator=Earnings per Share

Basic/=

Diluted/=

2.On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,100,000. The income tax rate is 25%. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows:

	Options Granted
Date Granted	(adjusted for the stock dividend)			Share Price
December 31, 2019		8,000		$	24
December 31, 2020		3,000		$	33
December 31, 2021		6,500		$	32

The market price of the common stock averaged $32 per share during 2021. Required: Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answers to 2 decimal places.)

Numerator/Denominator=Earnings per Share

Basic/=

Diluted/=

3.

On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dows net income for the year ended December 31, 2021, was $2,100,000. The income tax rate is 25%. Also, as a part of a 2020 agreement for the acquisition of Merrill Cable Company, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2022, if Merrills 2022 net income is at least $500,000. In 2021, Merrills net income was $630,000. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows:

	Options Granted
Date Granted	(adjusted for the stock dividend)			Share Price
December 31, 2019		8,000		$	24
December 31, 2020		3,000		$	33
December 31, 2021		6,500		$	32

The market price of the common stock averaged $32 per share during 2021. On July 12, 2019, Dow issued $800,000 of convertible 8% bonds at face value. Each $1,000 bond is convertible into 30 common shares (adjusted for the stock dividend). Required: Compute Dow's basic and diluted earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answers to 2 decimal places.)

Numerator/Denominator=Earnings per Share

Basic/=

Diluted/=