At January 1 2013 Canaday Corporation had outstanding the following
At January 1, 2013, Canaday Corporation had outstanding the following securities:
600 million common shares
20 million 6% cumulative preferred shares, $50 par
8% convertible bonds, $2,000 million face amount, convertible into 80 million common shares
The following additional information is available:
• On September 1, 2013, Canaday sold 72 million additional shares of common stock.
• Incentive stock options to purchase 60 million shares of common stock after July 1, 2012, at $12 per share were outstanding at the beginning and end of 2013. The average market price of Canaday’s common stock was $18 per share during 2013.
• Canaday’s net income for the year ended December 31, 2013, was $1,476 million. The effective income tax rate was 40%.

Required:
1. Calculate basic earnings per common share for the year ended December 31, 2013.
2. Calculate the diluted earnings per common share for the year ended December 31, 2013.

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