Assume the following facts are about a parent and its 70% owned subsidiary company:

What is the diluted earnings per share? DETAIL CALCULATION

	Parent	Subsidiary
Net income	$100,000	$60,000
Common shares outstanding	20,000	14,000 (20,000 = 70% owned by parent)
Convertible Preferred Stock	Dividends = $10,000 Convertible into 5,000 shares of common stock
Convertible Bonds		Interest expense after tax = $8,000 Convertible into 2,500 shares of common stock