Witter House is a calendar-year firm with 400 million common shares outstanding throughout 2016 and 2017. As part of its executive compensation plan, at January 1, 2015, the company had issued 45 million executive stock options permitting executives to buy 45 million shares of stock for $14 within the next eight years, but not prior to January 1, 2018. The fair value of the options was estimated on the grant date to be $3 per option.

In 2016, Witter House began granting employees stock awards rather than stock options as part of its equity compensation plans and granted 25 million restricted common shares to senior executives at January 1, 2016. The shares vest four years later. The fair value of the stock was $20 per share on the grant date. The average price of the common shares was $20 and $30 during 2016 and 2017, respectively.

The stock options qualify for tax purposes as an incentive plan. The restricted stock does not. The company's net income was $250 million and $260 million in 2016 and 2017, respectively. Its income tax rate is 40%.

Required:

1.

Determine basic and diluted earnings per share for Witter House in 2016. (Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

	Numerator	/	Denominator	=	Earnings per share
Basic		/		=
Diluted		/		=

2.

Determine basic and diluted earnings per share for Witter House in 2017. (Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

	Numerator	/	Denominator	=	Earnings per share
Basic		/		=
Diluted		/		=