On December 31, 2020, Berclair Inc. had 250 million shares of common stock and 11 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2021, Berclair purchased 60 million shares of its common stock as treasury stock.Berclair issued a 6% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for theyear ended December 31, 2021, was $550 million.Also outstanding at December 31 were 54 million incentive stock options granted to key executives on September 13, 2016. Theoptions were exercisable as of September 13, 2020, for 54 million common shares at an exercise price of $50 per share. During 2021,the market price of the common shares averaged $75 per share.The options were exercised on September 1, 2021.Required:Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (l.e.,10,000,000 should be entered as 10). Do not round intermediate calculations.)BasicDilutedNumerator 1451 1$$ 451/Denominator = Earnings per Share231 ■ $1.95=

Typically, EPS is reported in a company's financial statements, including its income statement. It…

On December 31, 2020, Berclair Inc. had 250 million shares preferred stock issued and outstanding. On March 1, 2021, Berclair issued a 6% common stock dividend on July 1, 202 year ended December 31, 2021, was $550 million. Also outstanding at December 31 were 54 million incentive- options were exercisable as of September 13 2020 for 54

On December 31, 2020, Berclair Inc. had 250 million shares preferred stock issued and outstanding. On March 1, 2021, Berclair issued a 6% common stock dividend on July 1, 202 year ended December 31, 2021, was $550 million. Also outstanding at December 31 were 54 million incentive- options were exercisable as of September 13 2020 for 54

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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