On December 31, 2020, Berclair Inc. had 360 million shares of common stock and 12 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 40 million shares of its common stock as treasury stock. Berclair issued a 5% 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 $600 million. Also outstanding at December 31 were 60 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 60 million common shares at an exercise price of $60 per share. During 2021, the market price of the common shares averaged $80 per share. The options were exercised on September 1, 2021.

Chapter 19, Homework 2 A Saved Help Save & Exit Submit Check my work 4 On December 31, 2020, Berclair Inc. had 360 million shares of common stock and 12 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 40 million shares of its common stock as treasury stock. Berclair issued a 5% 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 $600 million. 10 points eBook Also outstanding at December 31 were 60 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 60 million common shares at an exercise price of $60 per share. During 2021, the market price of the common shares averaged $80 per share. Hint The options were exercised on September 1, 2021. Print 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.) References Denominator = Numerator 1 $ 4921 Earnings per Share 0 Basic Diluted $ 4921 0