E10-16 Effect of Convertible Preferred Stock on Earnings per Share LO 10.4 Pagle Corporation holds 80 percent of Standard Company's common shares. The companies report the following balance sheet data for December 31, 20X1: Pagle Corporation Standard Company $ $ 58,000 86,000 128,000 740,000 (285,000) 128,000 $ 855,000 48,eee 66,000 78,000 300,000 (145,000) $ 347,000 Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Standard Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Taxes Payable Preferred Stock ($10 par value) Common Stock: $10 par value $5 par value Retained Earnings Total Liabilities and Owners' Equity $ 87,000 $ 209,000 76,000 200,000 100,000 100,000 270,000 $ 855,000 50,000 110,000 $ 347,000 An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard preferred stock Pagle's preferred shares are not convertible. Standard's preferred shares can be converted into 15,000 shares of common stock at any time. For 20X1, Standard reports $47,000 of net income and pays total dividends of $25,000, and Pagle reports $69,000 of income from its separate operations and pays total dividends of $41,000. Required: Compute basic and diluted EPS for the consolidated entity for 20X1. (Round your answers to 2 decimal places.) Basic earnings per share Diluted earnings per share