Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 152 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 $950 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.) Numerator Basic Diluted Denominator = = Earnings per Share
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 152 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 $950 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.) Numerator Basic Diluted Denominator = = Earnings per Share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;
stock options [LO19-5, 19-6, 19-7, 19-8]
On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 152 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 $950 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.)
Numerator
Basic
Diluted
Denominator
=
=
Earnings per Share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d1475e3-ff86-4b62-b2c6-3f50d1ad5e1e%2F1e28eded-19fa-4372-a7b4-62a8aa8dbc3f%2F9pimdxb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;
stock options [LO19-5, 19-6, 19-7, 19-8]
On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 152 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 $950 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.)
Numerator
Basic
Diluted
Denominator
=
=
Earnings per Share
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