Pen Corporation owns an 80 percent interest in She Company. Throughout 2011, Pen had 20,000 shares of common stock outstanding. She had the following securities outstanding:

??? 10,000 shares of common stock

??? Options to purchase 2,000 shares of She common at $15 per share

??? 1,000 shares of 10%, $100 par, convertible, preferred stock that are convertible into 3,000 shares of She common stock

Income data for the affiliates for 2011 are as follows:

REQUIRED: Compute basic and diluted earnings per share for Pen Corporation and Subsidiary for 2011, assuming an average market price for She common stock of $30 per share.

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She Pen Separate incomes Income from She ($45,000 income to common X 80%) - $6,000 patent amortization $120,000 $ 55,000 30,000 $150,000 $ 55,000