E 10-8

[EPS] Consolidated EPS with goodwill, noncontrolling interest, and warrants Information regarding Pang Corporation and its 90 percent-owned subsidiary, Wong Corporation, is summarized below:

Pang Wong Outstanding common stock, $10 par 325,000 shares 5,000 shares Warrants to acquire 10,000 comon stock shares at $10 per shares (average market price at $20 per share) — 10,000 Net income (includes income from Wong) $510,000 $200,000 Income from Wong ($180,000 – $10,000 patent amortization) $12,000 REQuIRED:

Determine the following:

1. Wong’s diluted earnings 2. Wong’s outstanding common share and common share equivalents 3. Pang’s diluted earnings if Wong’s diluted EPS is $5 per share 4. Pang’s diluted earnings per share if Wong’s diluted EPS is $5 per share