At January 1, 2016, Canaday Corporation had outstanding the following securities: 670 million common shares 20 million 5% 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, 2016, Canaday sold 78 million additional shares of common stock.•Incentive stock options to purchase 50 million shares of common stock after July 1, 2015, at $10 per share were outstanding at the beginning and end of 2016. The average market price of Canaday’s common stock was $20 per share during 2016.
•Canaday’s net income for the year ended December 31, 2016, was $1,504 million. The effective income tax rate was 40%.
Required:1. & 2.Calculate basic and diluted earnings per common share for the year ended December 31, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)