The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2024:

Additional Information:
• Proactive had 7 million shares of preferred stock authorized, of which 2 million were outstanding. All 2 million shares outstanding were issued in 2018 for $112 a share. The preferred stock is convertible into common stock on a two-for-one basis until December 31, 2026, after which the preferred stock no longer is convertible. None of the preferred stock has been converted into common stock at December 31, 2024. There were no dividends in arrears.
• Of the 13 million common shares authorized, there were 8 million shares outstanding on January 1, 2024. Proactive also sold 3 million shares at the beginning of September 2024 at a price of $52 a share.
• The company has an employee stock option plan in which certain key employees and officers may purchase shares of common stock at the market price at the date of the option grant. All options are exercisable beginning one year after the date of the grant and expire if not exercised within five years of the grant date. On January 1, 2024, options for 2 million shares were outstanding at $50 a share. Options for 1 million shares were exercised at the end of June 2024. No options expired during 2024. Additional options for 2 million shares were granted at $50 a share on July 1. The average price of the common stock was $60 during the entire year and $66.67 during the second half of the year. The only changes in the shareholders’ equity for 2024 were those described above, 2024 net income of $70 million, and cash dividends paid.

Required:
Determine each of the following:
1. Numerator for basic EPS
2. Denominator for basic EPS
3. Numerator for diluted EPS
4. Denominator for diluted EPS

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Common stock, $1 par Paid-in capital-excess of par on common stock 7% cumulative convertible preferred stock, $100 par value Paid-in capital-excess of par on preferred stock Retained earnings