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Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

FINANCIAL ACCOUNTING
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 250 million shares of common stock and 10 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 90 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, 2024, was $500 million. • Also outstanding at December 31 were 45 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 45 million common shares at an exercise price of $50 per share. • During 2024, the market price of the common shares averaged $75 per share. • The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Numerator + Denominator Earnings per Share Basic $ 5.00 410✔ + 410✓ 82 X = 127 X = Diluted $ $ 3.23 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. = IS
Transcribed Image Text:On December 31, 2023, Berclair Incorporated had 250 million shares of common stock and 10 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. • On March 1, 2024, Berclair purchased 90 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, 2024, was $500 million. • Also outstanding at December 31 were 45 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 45 million common shares at an exercise price of $50 per share. • During 2024, the market price of the common shares averaged $75 per share. • The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have been adjusted for any stock split or stock dividend.) Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Numerator + Denominator Earnings per Share Basic $ 5.00 410✔ + 410✓ 82 X = 127 X = Diluted $ $ 3.23 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. = IS
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