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The Alford Group had 170,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding. 2021 Feb. 28 Purchased 9,800 shares of treasury stock. Oct. 31 sold the treasury shares purchased on February 28. Nov. 30 Issued 36,000 new shares. Dec. 31 Net income for 2021 is $1,670,000. 2022 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2022 is $1,670,000. Required: 1. Determine the 2021 EPS. (Do not round Intermediate calculations.) 2. Determine the 2022 EPS. 3. At what amount will the 2021 EPS be presented in the 2022 comparative financial statements? (For all requirements, Enter your answers in thousands.) Answer is complete but not entirely correct. Numerator Denominator Earnings per Share 1.670,000 167,000 = S 10.00 1.670,000 412,000 - 1,670,000 334,000 1 09 S | 2. S IS 4.05 3. A S = 5.00 On December 31, 2020, Berclair Inc. had 480 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 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 $750 million. The income tax rate is 25%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2016. The options are 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. In 2017, $50.0 million of 8% bonds, convertible Into 6 million common shares, were issued at face value. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (l.e., 10,000,000 should be entered as 10). Do not round Intermediate calculations.) Answer is complete but not entirely correct. 1 Denominator Earnings per Share Basic Numerator S 723 S 726 / 484 = S 1.49 Diluted / 412 1.76 Walters Audio Visual Inc. offers an Incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 8 million $1 par common shares. The exercise price is the market price on the grant date_$6 per share. Options cannot be exercised prior to January 1, 2023, and expire December 31, 2027. The fair value of the 8 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12. 2023, when the market price is $7 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised. Answer is not complete. Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 to 5 Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $7 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Show less No Debit Credit 1 Date General Journal December 31, 202 Compensation expense Paid-in capital - stock options 4 4 2 December 31, 202 Compensation expense Paid-in capital - stock options 4 3 March 12. 2023 36,000,000 Cash Paid-in capital - stock options Common stock Paid-in capital - excess of par 4 10 December 31, 202 Paid-in capital - stock options Paid-in capital - expiration of stock options 10