EPS and diluted EPS help.

7. Award: 4.00 points On December 31, 2020, Berclair Inc. had 500 million shares of common stock and 19 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 4% 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 3950 million. Also outstanding at December 31 were 72 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 72 million common shares at an exercise price of $60 per share. During 2021, the market price of the common shares averaged $90 per share. The options were exercised on September 1, 2021. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (I.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) Numerator Denominator = Earnings per Share Basic Diluted References Worksheet Leaming Objective: 19-07 Describe how preferred dividends affect the calculation of EPS Learning Objective: 19-05 Describe what is meant by the weighted average number of common shares. Difficulty: 2 Medium Learning Objective: 19-08 Describe how options, rights, and warrants are incorporated in the calculation of EPS Leaming Objective: 19-05 Differentiate the effect on EPS of the sale of new shares, a stock dividend or stock split, and the reacquisition of shares