Punch Manufacturing Corporation owns $80$ percent of the common shares of Short Retail Stores. The companies' balance sheets as of

December $31,20$X$4,$ were as follows:

Short Retail's $8$ percent preferred stock is convertible into $16,000$ shares of common stock, and its $10$ percent bonds are convertible

into $8,000$ shares of common stock. Short reported net income of $$50,800$ for $204$ and paid dividends of $$30,000.$

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 $$115,000$ in $204$ and paid dividends of $$67,000.$ 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.

Note: Round your intermediate calculations and final answers to two decimal places.

Answer is complete but not entirely correct.Short Retail$$s $8$ percent preferred stock is convertible into $13,000$ shares of common stock, and its $10$ percent bonds are convertible into $8,000$ shares of common stock. Short reported net income of $$49,200$ for $20$X$4$ and paid dividends of $$30,600.$ Punch Manufacturing has $11$ percent preferred stock and $12$ percent bonds outstanding, neither of which is convertible. Punch reported after$-$tax income, excluding investment income from Short, of $$115,000$ in $20$X$4$ and paid dividends of $$62,000.$ The companies file separate tax returns and are subject to a $40$ percent income tax. Required: $1.$ Compute basic earnings per share $($Round your intermediate calculations and final answers to two decimal places.$)2.$ Compute diluted earning per share $($Round your intermediate calculations and final answers to two decimal places.$)$

Can you please show step$-$by$-$step solution for Diluted earnings per share? Thank you!