23. E 19-12 EPS; shares issued; stock dividend For the year ended December 31, 2021, Norstar Industries reported net income of $655,000. At January 1, 2021, the company had 800,000 common shares outstanding. The following changes in the number of shares occurred during 2021: May 24 Declared and distributed a 10% stock dividend May 31 Sold 80,000 shares in a public offering July 1 Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary Required: Compute Norstar's earnings per share for the year ended December 31, 2021. A) $0.64 B) $0.65 C) $0.67 D) $0.68 24. E 19-16 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 8%, $100 par value cumulative preferred stock issued and outstanding. On April 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 10% common stock dividend on July 1, 2021. Four million treasury shares were sold on November 1 Net income for the year ended December 31, 2021, was $150 million. Required: Compute Berclair's earnings per share for the year ended December 31, 2021. A) $0.65 B) $0.64 C) $0.63 D) $0.62 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options (Note: This is a variation of E 19-16, modified to include stock options.) On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 8%, $100 par value cumulative preferred stock issued and outstanding. On April 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 10% common stock dividend on July 1, 2021. Four million treasury shares were sold on November 1. Net income for the year ended December 31, 2021, was $150 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $58 per share. During 2021, the market price of the common shares averaged $80 per share. Required: Compute Berclair's diluted earnings per share for the year ended December 31, 2021. A) $0.62 B) $0.58 C) $0.60 D) $0.61 26. E 19-19 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds (Note: This is a variation of E 19-17 modified to include convertible bonds). On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 8%, $100 par value cumulative preferred stock issued and outstanding. On April 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 10% common stock dividend on July 1, 2021. Four million treasury shares were sold on November 1. Net income for the year ended December 31, 2021, was $150 million. The income tax rate is 25% Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2016. The options are exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $58 per share. During 2021, the market price of the common shares averaged $80 per share. In 2017, $50 million of 6% bonds, convertible into 8 million common shares, were issued at face value. Required: Compute Berclair's diluted earnings per share for the year ended December 31, 2021. A) $0.62 B) $0.61 C) $0.60 D) $0.59