In 2018, 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, 2018. The shares vest four years later. The fair value of the stock was $16 per share on the grant date. The average price of the common shares was $16 and $20 during 2018 and 2019, respectively. The stock options qualify for tax purposes as an incentive plan. The restricted stock does not. The company's net income was $280 million and $290 million in 2018 and 2019, respectively. Its income tax rate is 40%. Required: 1. Compute basic and diluted earnings per share for Witter House in 2018. 2. Compute basic and diluted earnings per share for Witter House in 2019. (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 10,000,000 should be entered as 10.00).) Numerator 7 $ 280/ $ 2801 Denominator = 430 = Earnings per share $ 0.65 1. Basic Diluted 2. Basic Diluted $ $ 2907 290L In 2018, 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, 2018. The shares vest four years later. The fair value of the stock was $16 per share on the grant date. The average price of the common shares was $16 and $20 during 2018 and 2019, respectively. The stock options qualify for tax purposes as an incentive plan. The restricted stock does not. The company's net income was $280 million and $290 million in 2018 and 2019, respectively. Its income tax rate is 40%. Required: 1. Compute basic and diluted earnings per share for Witter House in 2018. 2. Compute basic and diluted earnings per share for Witter House in 2019. (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 10,000,000 should be entered as 10.00).) Numerator 7 $ 280/ $ 2801 Denominator = 430 = Earnings per share $ 0.65 1. Basic Diluted 2. Basic Diluted $ $ 2907 290L