The following separate income statements are for Burks Company and its 80 percentowned subsidiary, Foreman Company:

	Burks				Foreman
Revenues	$	(438,000	)		$	(338,000	)
Expenses		270,000				244,000
Gain on sale of equipment		0				(34,000	)
Equity earnings of subsidiary		(68,000	)			0
Net income	$	(236,000	)		$	(128,000	)
Outstanding common shares		65,000				40,000

Additional Information

Amortization expense resulting from Foremans excess acquisition-date fair value is $41,000 per year.

Burks has convertible preferred stock outstanding. Each of these 10,000 shares is paid a dividend of $4 per year. Each share can be converted into four shares of common stock.

Stock warrants to buy 10,000 shares of Foreman are also outstanding. For $12, each warrant can be converted into a share of Foremans common stock. The fair value of this stock is $20 throughout the year. Burks owns none of these warrants.

Foreman has convertible bonds payable that paid interest of $49,000 (after taxes) during the year. These bonds can be exchanged for 25,000 shares of common stock. Burks holds 10 percent of these bonds, which it bought at book value directly from Foreman.

Compute basic and diluted EPS for Burks Company.

Earnings Per Share

Basic:

Diluted: