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Branch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies balance sheets as of December 31, 20X4, were as

Branch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies balance sheets as of December 31, 20X4, were as follows:

Branch Manufacturing Corporation Short Retail Stores
Assets
Cash $ 50,000 $ 30,000
Accounts Receivable 100,000 80,000
Inventory 260,000 120,000
Land 90,000 60,000
Buildings and Equipment 500,000 300,000
Less: Accumulated Depreciation (220,000 ) (120,000 )
Investment in Short Retail Stores Stock 120,000
Total Assets $ 900,000 $ 470,000
Liabilities and Equity
Accounts Payable $ 40,000 $ 20,000
Bonds Payable 300,000 200,000
Preferred Stock ($10 par value) 200,000 100,000
Common Stock:
$10 par value 150,000
$5 par value 100,000
Retained Earnings 210,000 50,000
Total Liabilities and Equity $ 900,000 $ 470,000

Short Retails 8 percent preferred stock is convertible into 12,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $49,200 for 20X4 and paid dividends of $30,000.

Branch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Branch reported after-tax income, excluding investment income from Short, of $100,000 in 20X4 and paid dividends of $60,000. The companies file separate tax returns and are subject to a 40 percent income tax..

Required:

Compute basic and diluted EPS for the consolidated entity. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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