On December 31, 2020, Berclair Inc. had 360 million shares ofcommon stock and 3 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2021, Berclairpurchased 88 million shares of its common stock as treasury stock.Berclair issued a 5% common stock dividend on July 1, 2021. Fourmillion treasury shares were sold on October 1. Net income for theyear ended December 31, 2021, was $550 million. Also outstanding atDecember 31 were 30 million incentive stock options granted to keyexecutives on September 13, 2013. The options were exercisable asof September 13, 2020, for 30 million common shares at an exerciseprice of $56 per share. During 2021, the market price of the commonshares averaged $70 per share. Required: Compute Berclair's basicand diluted earnings per share for the year ended December 31,2021. (Enter your answers in millions (i.e., 10,000,000 should beentered as 10). Do not round intermediate calculations.)
