Pal Corporations net income for 2011 is $316,000, including $160,000 income from Sod Corporation, its 80 percent-owned subsidiary. The income from Sod consists of $176,000 equity in income less $16,000 patent amortization. Pal has 300,000 shares of $10 par common stock outstanding, and Sod has 50,000 shares of $10 par common stock outstanding throughout 2011. In addition, Sod has 10,000 outstanding warrants to acquire 10,000 shares of Sod common stock at $10 per share. The average market price of Sods common stock was $20 per share during 2011.

1. For purposes of calculating Pal Corporations (and consolidated) diluted earnings per share, Sods diluted earnings are:

a. $220,000

b. $200,000

c. $176,000

d $160,000

Do not copy from Chegg, otherwise, I have to report the answer.