Information from the financial statements of Ames Fabricators, Inc., included the following:

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 23 million stock options were granted, exercisable for 23 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 90% of the quoted market price on January 1, 2021, which was $20. The fair value of the 23 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur. Ten percent (2.3 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stocks price jumped unexpectedly to $22 per share. Required: 1. When is Ensors stock option measurement date? 2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.) 3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on Ensors financial statements for 2022 and 2023. 5. Prepare the journal entry to account for the exercise of the options in 2025.

Amess net income for the year ended December 31, 2021, is $900,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required:

Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For example, 100,000 should be entered as 100). Do not round intermediate calculations.)