Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate On January 1, 2021, Tonge Industries had outstanding 760,000 common shares ($1 par) that originally sold for $25 per share, and 8,000 shares of 10% cumulative preferred stock ($100 par), convertible into 80,000 common shares. On October 1, 2021, Tonge sold and issued an additional 12,000 shares of common stock at $32. At December 31, 2021, there were 27,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 27,000 shares of common stoc an exercise price of $35. The market price of the common stock at year-end was $53. During the year, the price of the common sha had averaged $45. Net income was $900,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands (i.e., 100,000 should be entered as 100). Round "Earnings per share" answers to 2 decimal places.) Answer is complete but not entirely correct. Earnings per Numerator Denominator share 80,000/ 763,000 1.07 900,000 849,000 1.06 $ Basic Diluted $ Prev 1 of 2 HE Next > Help Saved Witter House is a calendar-year firm with 500 million common shares outstanding throughout 2021 and 2022. As part of its executive compensation plan, at January 1, 2020, the company had issued 60 million executive stock options permitting executives to buy 60 million shares of stock for $10 within the next eight years, but not prior to January 1, 2023. The fair value of the options was estimated on the grant date to be $3 per option in 2021, Witter House began granting employees stock awards rather than stock options as part of its equity compensation plans and granted 20 million restricted common shares to senior executives at January 1, 2021. The shores vest four years later. The fair value of the stock was $12 per share on the grant date. The average price of the common shares was $12 and $20 during 2021 and 2022, respectively The stock options qualify as an incentive plan. The restricted stock does not. The company's net income was $350 million and $360 million in 2021 and 2022, respectively. Required: 1. Compute basic and diluted earnings per share for Witter House in 2021 2. Compute basic and diluted earnings per share for Witter House in 2022. (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (ie.. 10,000,000 should be entered as 10). Round "Earnings per share" answers to 2 decimal places.) Numerator Denominator Earnings per share 1. Basic Diluted 1 1 2 Basic Diluted