Reference no: EM132837362

At January 1, 2021, Canaday Corporation had outstanding the following securities:

1. 730 million common shares
2. 20 million 5% cumulative preferred shares, $50 par
3. 6.4% convertible bonds, $2,000 million face amount, convertible into 60 million common shares

The following additional information is available:

1. On September 1, 2021, Canaday sold 84 million additional shares of common stock.
2. Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $25 per share during 2021.
3. Canaday's net income for the year ended December 31, 2021, was $2,182 million. The effective income tax rate was 25%.

Required:

Problem 1: Calculate basic and the diluted earnings per common share for the year ended December 31, 2021.