Earnings per share

On January 1, 2021, ABC Inc. had 300 million shares of common stock and 13 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 31, 2021, Berclair purchased 30 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on June 1, 2021. Four million treasury shares were sold on September 1. Net income for the year ended December 31, 2021, was $650 million. 60 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 60 million common shares at an exercise price of $60 per share. During 2021, the market price of the common shares averaged $80 per share. The options were exercised on September 30, 2021. Required:

Compute ABCs basic and diluted earnings per share for the year ended December 31, 2021.