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Item10 Time Remaining 3 hours 48 minutes 10 seconds 03:48:10 Item 10 Item 10 Time Remaining 3 hours 48 minutes 10 seconds 03:48:10 Punch Manufacturing

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Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies balance sheets as of December 31, 20X4, were as follows:

Punch Manufacturing Corporation Short Retail Stores
Assets
Cash $ 51,000 $ 31,000
Accounts Receivable 107,000 87,000
Inventory 250,000 135,000
Land 115,000 85,000
Buildings and Equipment 500,000 330,000
Less: Accumulated Depreciation (240,000 ) (135,000 )
Investment in Short Retail Stores 140,000
Total Assets $ 923,000 $ 533,000
Liabilities and Equity
Accounts Payable $ 93,000 $ 58,000
Bonds Payable 270,000 200,000
Preferred Stock ($10 par value) 200,000 100,000
Common Stock:
$10 par value 150,000
$5 par value 100,000
Retained Earnings 210,000 75,000
Total Liabilities and Equity $ 923,000 $ 533,000

Short Retails 8 percent preferred stock is convertible into 14,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $51,400 for 20X4 and paid dividends of $30,400. Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Punch reported after-tax income, excluding investment income from Short, of $115,000 in 20X4 and paid dividends of $69,000. The companies file separate tax returns and are subject to a 40 percent income tax. Required: Compute basic and diluted EPS for the consolidated entity. (Round your intermediate calculations and final answers to two decimal places.)

Basic earnings per share:

Diluted earnings per share:

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