Example (Earnings Per Share) The following information was for 20x2 Net Income $500 million Common Stock, $1 par 150 million shares 1/1 shares outstanding 24 million shares 2/1 retired for cash 7/23 2-for-1 split 18 million shares 9/1 sold for cash Preferred Stock, 10%, $60 par, cumulative, non-convertible Preferred stock, 8%, $50 part, cumulative, convertible into 4 million $70 milliorn $100 million shares of common stock ncentive Stock Options outstanding, fully vested, for 4 million shares of common stock, exercisable at $15 per share Bonds Payable, 12.5%, convertible into 20 milion shares of common $200 million stock Additional data t. The average market price of the common stock was $20. 2. The convertible preferred stock and the bonds payable had been issued at par in 20xx 3. The tax rate was 40% Required Calculate basic and diluted earnings per share for the yar ended December 31, 20x2