The Cookie Company owns 100% (2000 of the 2000 shares of Donut Company. Information for Cookie and Donut are as follows:

Shares common stock: Cookie 40000 Donut 2000

Shares of 20% $50 par preferred stock Cookie 0 Donut 100

Income after taxes but before dividends: Cookie $100,000 Donut $ 19,000

Situation a: Donuts preferred stock in non-convertible cumulative

Calculate Cookies earnings per share

Situation b: Donuts each share of Donuts preferred stock can be converted into 4 shares of common stock

Calculate Cookies earnings per share.