Exercise 10-16 (Algo) 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 Standard Corporation Company 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: $ 55,000 $ 45,000 89,000 69,000 79,000 129,000 720,000 340,000 (300,000) (155,000) 144,000 $ $ 837,000 378,000 $ 252,000 $ 98,000 75,000 200,000 100,000 $10 par value 100,000 $5 par value Retained Earnings 210,000 50,000 130,000 $ Total Liabilities and Owners' Equity $ 837,000 378,000 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 $48,000 of net Income and pays total dividends of $27,000, and Pagle reports $64,000 of income from its separate operations and pays total dividends of $44,000. Required: Compute basic and diluted EPS for the consolidated entity for 20X1. Note: Round your answers to 2 decimal places. Basic earnings per share Diluted earnings per share