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Comprehensive Earnings per Share

Plug Corporation holds 80 percent of Socket Companys common stock. The following balance sheet data are presented for December 31, 20X7:

		Plug Corporation		Socket Company
Cash		$ 100,000		$ 90,000
Accounts Receivable		150,000		220,000
Inventory		300,000		300,000
Land		100,000		290,000
Buildings & Equipment		2,250,000		900,000
Less: Accumulated Depreciation		(850,000)		(250,000)
Investment in Socket Company		600,000
Total Assets		$2,650,000		$1,550,000
Accounts Payable		$ 200,000		$ 100,000
Bonds Payable		800,000		500,000
Preferred Stock ($100 par value)				200,000
Common Stock ($10 par value)		1,000,000		400,000
Retained Earnings		650,000		350,000
Total Liabilities & Equities		$2,650,000		$1,550,000

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Socket reported net income of $115,000 in 20X7 and paid dividends of $60,000. Its bonds have an annual interest rate of 8 percent and are convertible into 30,000 common shares. Its preferred shares pay an 11 percent annual dividend and convert into 20,000 shares of common stock. In addition, Socket has warrants outstanding for 10,000 shares of common stock at $8 per share. The 20X7 average price of Socket common shares was $40.

Plug reported income of $300,000 from its own operations for 20X7 and paid dividends of $200,000. Its 10 percent bonds convert into 25,000 shares of its common stock. The companies file separate tax returns and are subject to income taxes of 40 percent.

Required

Compute basic and diluted EPS for the consolidated entity for 20X7.

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