The following information was for 20x2

Net income $500 million

Common stock, $1 par

1/1 shares outstanding 150 million shares

2/1 retired for cash 24 million shares

7/23 2-for-1 split

9/1 sold for cash 18 million shares

Preferred stock,10%, $60 par, cumulative, non-convertible

Preferred stock, 8%, $50 part, cumulative, convertible into 4 million shares of common stock

Incentive stock options outstanding, fully vested, for 4 million shares of common stock, exerciseable at $15 per share

Bonds payable, 12.5%, convertible into 20 million shares of common stock

Additional data:

1. 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 year ended December 31, 20x2

Example (Earnings Per Share) The following information was for 20x2: Net Income $500 million Common Stock, $1 par 1/1 shares outstanding 150 million shares 24 million shares 2/1 retired for cash 7/23 2-for-1 split 9/1 sold for cash Preferred Stock, 10%, $60 par, cumulative, non-convertible Preferred Stock, 8%, $50 part, cumulative, convertible into 4 million shares of common stock Incentive Stock Options outstanding, fully vested, for 4 million shares of common stock, exercisable at $15 per share Bonds Payable, 12.5%, convertible into 20 million shares of common stock 18 million shares $70 million $100 million $200 million Additional data: The average market price of the common stock was $20. 2. 1. 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 year ended December 31, 20x2