The following information is for questions 1-2:

Company A acquired a 80% interest in Company B's 10,000 outstanding shares in Jan 1, 20X1.

The consolidated net income for 20X2 after all adjustments was $200,000

Annual excess amortization of MV over BV due to this acquisition is $5,000

Company A paid dividend of $10,000 for its preferred stocks and $40,000 for its common stocks, and Company B paid $20,000 for its common stocks in 20X2.

Company B has $200,000 LT debt that can be converted into 20,000 shares of its common stocks. The net-of-tax interest expense of this debt is $5,000. Company A owns none of this debt.

Company B's 20X2 income is $50,000 and NCI in consolidated NI of $200,000 is $8,000.

Company A applies equity method and reported equity income of $36,000 (80%*($50,000-$5,000)) from Company B.

Comparative consolidated balance sheets are as follows:

	20X2	20X1
Current assets	$300,000	$400,000
Equipment	250,000	200,000
Trademarks	320,000	240,000
Patents	150,000	180,000
Liabilities	340,000	200,000
NCI	200,000	150,000
Preferred stock (5% cumulative)	50,000	50,000
Common stock (30,000 shares)	300,000	300,000
Retained earnings, 12/31	$130,000	$320,000

1. What is the diluted EPS for Company B?

2. What is the diluted consolidated EPS?