Pagle Corporation holds 80 percent of Standard Company’s common shares. The companies report the following balance sheet data for December 31, 20X1:

An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard preferred stock. Pagle’s preferred shares are not convertible. Standard’s preferred shares can be converted into 15,000 shares of common stock at any time. For 20X1, Standard reports $45,000 of net income and pays total dividends of $20,000, and Pagle reports $60,000 of income from its separate operations and pays total dividends of $35,000.

Required

Compute basic and diluted EPS for the consolidated entity for 20X1.

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Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Standard Company Stock Total Assets Accounts Payable Taxes Payable Preferred Stock ($10 par value) Common Stock: $10 par value $5 par value Retained Earnings Pagle Corporation Standard Company $ 50,000 $ 40,000 80,000 60,000 140,000 90,000 700,000 300,000 (280,000) (140,000) 160,000 $850,000 $350,000 $120,000 $ 50,000 80,000 200,000 100,000 350,000 100,000 50,000 150,000