On December 31, 2020, Berclair Inc. had 400 million shares of common stock and 5 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2021, Berclair purchased 104 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 theyear ended December 31, 2021, was $650 million.Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. Theoptions 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.)Numerator1 DenominatorEarnings per ShareBasicDilutedI==

Numerator/Denominator=EPS Net income/Weighted Average Shares= Basic EPS605/340=1.78Diluted…

Answered: On December 31, 2020, Berclair Inc. had…

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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On December 31, 2023, Berclair Incorporated had 420 million shares of common stock and 7 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 36 million shares of its common stock as treasury stock. • Berclair issued a 5% common stock dividend on July 1, 2024. Six million treasury shares were sold on October 1. .Net income for the year ended December 31, 2024, was $700 million. Required: Compute Berclair's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Numerator 4. Denominator Earnings per Share =
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