FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 4 million shares of 9%, $100 par value
cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 64 million shares of its common
stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold
on October 1. Net income for the year ended December 31, 2021, was $400 million. Also outstanding at December 31
were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as
of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price
of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the
year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round
intermediate calculations.)
Basic
Diluted
Numerator 1 Denominator
364 /
1
$
II
=
||
=
Earnings per Share
0
0
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Transcribed Image Text:On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 64 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $400 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) Basic Diluted Numerator 1 Denominator 364 / 1 $ II = || = Earnings per Share 0 0
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