E 10-9

[EPS] Consolidated basic and diluted EPS The following information is available regarding Pam Corporation and its 80 percent–owned subsidiary, Sun Corporation, at and for the year ended December 31, 2016:

Pam Sun Outstanding common stock 8,000 shares 5,000 shares Warrants to purchase 1,000 shares of Sun common stock at $9 per share (average market price is $15) 1,000 warrants Net income (includes income from Sun) $20,000 $18,000 Income from Sun ($14,400 - $2,400 amortization of excess cost over book value acquired) $12,000 REQuIRED: Determine consolidated earnings per share (both basic and diluted).

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