Exercise $19-19($Algo$)$ EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;

stock options; convertible bonds $[$LO$19-5,19-6,19-7,19-8,19-9]$

On December $31,2020,$ Berclair Inc. had $600$ million shares of common stock and $3$ million shares of $9\%,$$$100$ par value cumulative

preferred stock issued and outstanding. On March $1,2021,$ Berclair purchased $24$ 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 the

year ended December $31,2021,$ was $$1,050$ million. The income tax rate is $25\%.$

Also outstanding at December $31$ were 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\mathrm{.}0$ million of $8\%$ bonds, convertible into $6$ million common shares, were issued at face value.

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.$)$