E10-15 Effect of Convertible Bonds on Earnings per Share Lo 10-4 Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Poppy Corporation Seed Company Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity $ 91,000 86,000 119,000 680,000 (210,000) 141, $ 907,000 $ 33,000 52, eee 97, eee 390, eee (78, 800) $494,000 $ 117,000 25e,eee 300,000 240,000 $ 907,000 $ 59,000 200,000 100,000 135,000 $494,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is applicable to both companies. Seed reports net income of $36,000 for 20x2 and pays dividends of $10,000 Poppy reports income from its separate operations of $46,000 and pays dividends of $20,000 Required: Compute basic and diluted EPS for the consolidated entity for 20x2. (Round your answers to 2 decimal places.) $ Basic earnings per share Dated earnings per share 1.88 1.92 s