At January 1, 2021, Canaday Corporation had outstanding the following securities: 710 million common shares 40 million 5% cumulative preferred shares, $50 par 4% convertible bonds, $4,000 million face amount, convertible into 80 million common shares The following additional information is available:

• On September 1, 2021, Canaday sold 78 million additional shares of common stock.
• Incentive stock options to purchase 60 million shares of common stock after July 1, 2020, at $12 per share were outstanding at the beginning and end of 2021. The average market price of Canadays common stock was $18 per share during 2021.
• Canaday's net income for the year ended December 31, 2021, was $1,520 million. The effective income tax rate was 40%.

Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021

	Numerator	/	Denominator	=	Earnings per share
Basic	$2,324selected answer incorrect	/	736selected answer correct	=	$3.16
Diluted	$2,516selected answer incorrect	/	836selected answer correct	=	$3.01

*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.