Computing consolidated earnings per share (EPS)

Assume the following facts about a parent and its 80% owned subsidiary company:

parent	Subsidiary
Net Income $200,000 Common shares outstanding 40,000 Convertible preferred stock Dividends=$20,000 Convertible into 10,000 shares of common stock Convertible bonds	$50,000 20,000(16,000=80% owned by parent) Interest expense after tax=$8,000 convertible into 5,000 shares of common stock

Compute basic earnings per share

Compute diluted earnings per share