Branch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The balance sheets of the companies as of December 31,20X4, were as follows:

The 8 percent preferred stock of Short Retail is convertible into 12,000 shares of common stock, and Short's 10 percent bonds are convertible into 8,000 shares of common stock. Short Retail reported net income of \(\$ 49,200\) for \(20 \times 4\) and paid dividends of \(\$ 30,000\).
Branch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Branch Manufacturing reported after-tax income, excluding investment income from Short Retail, of \(\$ 100,000\) in 20X4 and paid dividends of \(\$ 60,000\). The companies file separate tax returns and are subject to a 40 percent income tax.
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Compute basic and diluted earnings per share for the consolidated entity.

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Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Short Retail Stores Stock Branch Manufacturing Corporation $ 50,000 100.000 260,000 Short Retail Stores $ 30,000 80.000 120,000 90,000 60,000 500,000 300,000 (220,000) (120,000) 120,000 Total Assets Accounts Payable $900,000 $470,000 $ 40,000 Bonds Payable Preferred Stock ($10 par value) Common Stock: 300.000 $ 20,000 200,000 200,000 100,000 $10 par value 150.000 $5 par value 100,000 Retained Earnings 210,000 50.000 Total Liabilities and Equities $900.000 $470,000