Following are separate income statements for Austin, Inc., and its 80 percent owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole.

Additional Information
€¢ Annual excess fair over book value amortization of $25,000 resulted from the acquisition.
€¢ The parent applies the equity method to this investment.
€¢ Austin has 50,000 shares of common stock and 10,000 shares of preferred stock outstanding.
Owners of the preferred stock are paid an annual dividend of $40,000, and each share can be exchanged for two shares of common stock.
€¢ Rio Grande has 30,000 shares of common stock outstanding. The company also has 5,000 stock warrants outstanding. For $10, each warrant can be converted into a share of Rio Grande€™s common stock. Austin holds half of these warrants. The price of Rio Grande€™s common stock was $20 per share throughout the year.
€¢ Rio Grande also has convertible bonds, none of which Austin owned. During the current year, total interest expense (net of taxes) was $22,000. These bonds can be exchanged for 10,000 shares of the subsidiary€™s common stock.
Determine Austin€™s basic and dilutedEPS.

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Revenues Cost of goods sold Operating expenses Austin Rio Grande Consolidated $(700,000) $(500,000) $(1,200,000) 300,000 70,000 400,000 100,000 Equity in earnings of Rio Grande(84,000) 700,000 195,000 Individual company net income Consolidated net income . Noncontroling interest in $(284,000) (130,000) s (305,000) Rio Grande's income (21,000) Consolidated net income attributable to Austin .