Net income $500 million, common stock $1 par. 1/1 shares outstanding 150 million shares, 2/1 retire for cash 24 million shares, 7/23 2-for-1 split. 9/1 sold for cash 18million shares

Preferred stock, 10% $60 par, cumulative, non-convertible $70 million. Preferred stock, 8% $50 par, cumulative, convertible into 4 million shares common stock $100 million. Incentive stock option outstanding, fully vested for 4 million shares of common stock, exercisable at $15 per share. Bond payable, 12.5% convertible into 20 million shares of common stock $200 million.

The average market price of common stock was $20

The convertible preferred stock and the bonds payable had been issued at par in 2012

The tax rate was 40%

Require: calculate basic and diluted earnings per share for the year ended December 31, 2014