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On December 31, 2020, Beaver Inc. had 280 million shares of...

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Accounting

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On December 31, 2020, Beaver Inc. had 280 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Beaver purchased 24 million shares of its common stock as treasury stock. Beaver issued a 5% common stock dividend on July 1, 2021.4 million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $250 million. The income tax rate is 25%. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2016. The options are 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. In 2017 $50 million of 8% bonds, convertible into 6 million common shares, were issued at face value. Required: Compute Beaver's basic and diluted earnings per share for the year ended December 31, 2021

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