Al Faris Co. owned 80% of the common stock of Al Bayan Co. Al Bayan had 50,000 shares of $5 par value common stock and 2,000 shares of convertible preferred stock outstanding. Each preferred share received an annual per share dividend of $10 and is convertible into four shares of common stock. Al Faris did not own any of Al Bayan's preferred stock. Al Bayan also had 600 bonds outstanding, each of which is convertible into ten shares of common stock. These convertible bonds had a face value of $400,000. The balance of the discount account on the convertible bonds payable was $50,793.65 as of 1 January, 2013. Al Faris did not own any of Al Bayan's convertible bonds. On 1 January 2013, Al Faris sold an equipment, with a remaining useful life of 7 years and a book value of $184,000, to Al Bayan for $95,000. The Equipment was originally acquired by Al Faris for $250,000 and had an estimated residual value of $30,000. Both Al Faris and Al Bayan used straight line method of depreciation. Al Bayan estimated the residual value to be $25,000. Al Bayan reported net income of $3,000,000 for 2013. Al Faris reported net income of $5,000,000 for 2013. The weighted average number of ordinary shares outstanding for Al Faris during 2013 was 100,000 shares. Al Faris did not have any convertible instruments by the end of 2013. The effective market rate was 9% and the tax rate was 30%. Required: Calculate the following: a) Basic EPS for the Consolidated Entity for 2013. b) Diluted EPS for the consolidated entity for 2013.