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Witter House is a calendar-year firm with 360 million common shares outstanding throughout 2024 and...

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Accounting

Witter House is a calendar-year firm with 360 million common shares outstanding throughout 2024 and 2025. As part of its executive compensation plan, at January 1,2023, the company had issued 60 million executive stock options permitting executives to buy 60 million shares of stock for $14 within the next eight years, but not prior to January 1,2026.
The fair value of the options was estimated on the grant date to be $3 per option.
In 2024, Witter House began granting employees stock awards rather than stock options as part of its equity compensation plans and granted 30 million restricted common shares to senior executives at January 1,2024.
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 $24 during 2024 and 2025, respectively.
The stock options qualify as an incentive plan.
The restricted stock does not.
The company's net income was $210 million and $220 million in 2024 and 2025, respectively.
Required:
Compute basic and diluted earnings per share for Witter House in 2024.
Compute basic and diluted earnings per share for Witter House in 2025.

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