3 points Save Answer Power Corporation owns 75 percent of Transmitter Company's common stock. At the date of acquisition the fair value of the noncontrolling interest was equal to the book value of Transmitter Company's common stock. The following balance sheet data are presented for December 31, 20X8: Cash Accounts Receivable Inventory Power Corporation $ 90,000 Transmitter Company $ 60,000 70,000 85,000 140,000 105,000 Land 100,000 80,000 Buildings and Equipment 1,000,000 700,000 Less: Accumulated Depreciation (500,000) (280,000) Investment in Transmitter Company Stock 300,000 Total Assets $ 1,200,000 $750,000 Accounts Payable $ 150,000 $ 50,000 Bonds Payable 300,000 200,000 Preferred Stock ($100 par value) 100,000 200,000 Common Stock ($ 10 par value) Retained Earnings Total Liabilities and Equities 500,000 250,000 $ 1,200,000 200,000 $ 150,000 Transmitter reported net income of $90,000 in 20X8 and paid dividends of $30,000. Its bonds have an annual interest rate of 10 percent and are convertible into 12,000 common shares. Its preferred shares pay a 12 percent annual dividend and convert into 5,000 shares of common stock. In addition, Transmitter has warrants outstanding for 12,000 shares of common stock at $15 per share. The 20X8 average price of Transmitter common shares was $25. Power reported income of $180,000 from its own operations for 20X8 and paid dividends of $40,000. Its 9 percent bonds convert into 8,000 shares of its common stock. The companies file separate tax returns and are subject to income taxes of 40 percent. Compute basic earnings per share for the consolidated entity for 20X8.