Pam Corporation owns 80 percent of Sun Corporation's outstanding common stock. The 80 percent interest was acquired in 2016 at $40,000 in excess of book value due to undervalued equipment with an eight-year remaining useful life. Outstanding securities of the two companies throughout 2017 and at December 31, 2017, are:

Sun Corporation's net income is $50,000 for 2017, and Pam's net income consists of $70,000 separate income and $23,800 income from Sun.
REQUIRED:
1. Compute consolidated basic and diluted earnings per share, assuming that the preferred stock is convertible into 4,000 shares of Sun Corporation's common stock.
2. Compute consolidated basic and diluted earnings per share, assuming that the preferred stock is convertible into 5,000 shares of Pam's common stock.

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Pam Sun 20,000 shares Common stock, $5 par Common stock, $10 par 14% cumulative, convertible, preferred stock, 6,000 shares 1,000 shares $100 par