Following are separate income statements for Amarillo, Inc., and its 80 percent–owned subsidiary, Saltillo Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses).

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.∙ Amarillo 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.∙ Saltillo has 30,000 shares of common stock outstanding.∙ Saltillo has convertible bonds outstanding, none of which Amarillo 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 Amarillo’s basic and diluted EPS.

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Revenues Cost of goods sold Operating expenses. Equity in earnings of Saltillo Individual company net income. Consolidated net income Noncontrolling interest in consolidated net income.... Consolidated net income attributable to Amarillo Amarillo $(700,000) $(500,000) 400,000 300,000 70,000 Saltillo Consolidated $(1,200,000) 700,000 195,000 100,000 (84,000) $(284,000) $(130,000) $ (305,000) (21,000) $ (284,000)