1. If a parent company has controlling interest in a subsidiary, which has no potentially dilutive securities outstanding, then in the calculation of consolidated diluted EPS, it will be necessary to A. Only make an adjustment of subsidiary's basic earnings. B. Replace the parent's equity in subsidiary earnings with the parent's equity in subsidiary's diluted EPS. C. Make a replacement calculation in the parent's basic earnings for the EPS. D. Only use the parent's common shares and shares represented by the parent's potentially dilutive securities. 2. Pringamo Co. has 100,000 common stock shares outstanding and its 100%-owned subsidiary Suela has 25,000 common stock shares outstanding. Pringamo and Suela do not have any potentially dilutive securities outstanding. The separate net incomes for Pringamo and Suela are $350,000 and $150,000, respectively. Diluted EPS for the consolidated company is A. $3.50 B. $4.00 C. $5.00 D. $10.00 3. In computing consolidated diluted EPS, the replacement calculation replaces the parent's equity in subsidiary earnings with the A. parent's share of basic EPS of the subsidiary. B. subsidiary's share of basic EPS of the parent. C. parent's share of diluted EPS of the subsidiary. D. subsidiary's share of diluted EPS of the parent. 4. Suave Co. is a subsidiary that has preferred stock that is convertible into subsidiary common stocks. The parent's equity in the subsidiary has diluted earnings calculated by the number of A. Subsidiary shares into which the subsidiary's dilutive securities can converted times the subsidiary's basic EPS figure. B. Parent shares into which the subsidiary's dilutive securities can converted times the parent's basic EPS figure. C. Subsidiary common shares held by the parent times the subsidiary has diluted EPS figure. D. Parent shares into which the subsidiary's dilutive securities can converted times the subsidiary's basic EPS figure