Pancino Corporation owns a 90% interest in Sakal Corporation. Throughout 2005, Sakal had 20,000 shares of common stock outstanding and Pancino has 50,000 shares of common stock outstanding. Sakals only dilutive security also consists of 10,000 stock options. It takes 4 options plus $20 to acquire one share of Sakal common stock. The average price of Sakals stock is $50 per share. Pancinos and Sakals separate incomes for the year are $100,000 and $80,000, respectively.

Required:

Compute the amount of basic and diluted earnings per share for Pancino and Sakal Corporations.