Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Net income $220,000 Common shares outstanding 50,000 Convertible preferred stock Dividends = $21,300 Convertible into 9,000 shares of common stock Convertible bonds Subsidiary $50,000 30,000 (22,500 = 75% owned by parent) Interest expense after tax = $5,860 Convertible into 8,000 shares of common stock a. Compute basic earnings per share $ 4.724 x b. Compute diluted earnings per share $ 1.47 X