On December $31,2023,$ Berclair Incorporated had $360$ million shares of common stock and $12$ million shares of $9\%,$ $$100$ par value cumulative preferred stock issued and outstanding.

On March $1,2024,$ Berclair purchased $40$ million shares of its common stock as treasury stock.

Berclair issued a $5\%$ 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 $$600$ million.

Also outstanding at December $31$ were $60$ million incentive stock options granted to key executives on September $13,2019.$

The options were exercisable as of September $13,2023,$ for $60$ million common shares at an exercise price of $$60$ per share.

During $2024,$ the market price of the common shares averaged $$80$ 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 $10).$

On May $31,2024,$ Albrecht sold for cash $12,000$ shares of its common stock.

No cash dividends were declared for $2024.$

For the year ended December $31,2024,$ Albrecht reported a net loss of $$1,140,000.$

Required:

Calculate Albrecht's net loss per share for the year ended December $31,2024.$

The exercise price is the market price on the grant date$$$$8$ per share.

Options cannot be exercised prior to January $1,2026,$ and expire December $31,2030.$

The fair value of the $16$ million options, estimated by an appropriate option pricing model, is $$1$ per option.

Required:

$1.$ Determine the total compensation cost pertaining to the incentive stock option plan.

$2.$ to $5.$ Prepare the appropriate journal entries to record compensation expense on December $31,2024$ and $2025.$ Prepare the appropriate journal entry to record the exercise of $75\%$ of the options on March $12,2026,$ when the market price is $$9$ per share and the entry on December $31,2030,$ when the remaining options that have vested expire without being exercised.The exercise price is the market price of the shares on the date of grant, $$31\mathrm{.}00$ per share.

The fair value of the $18$ million options, estimated by an appropriate option pricing model, is $$7$ per option.

No forfeitures are anticipated.

Ignore taxes.

Required:

Determine the total compensation cost pertaining to the options.

Prepare the appropriate journal entry to record the award of options on January $1,2024.$

Prepare the appropriate journal entry to record compensation expense on December $31,2024.$

Prepare the appropriate journal entry to record compensation expense on December $31,2025.$