Can anyone please tell me how $$8\mathrm{.}71$ is incorrect?

Short Retail's $8$ percent preferred stock is convertible into $16,000$ shares of common stock, and its $10$

percent bonds are convertible into $8,000$ shares of common stock. Short reported net income of

$$51,400$ for $204$ and paid dividends of $$30,100.$

Punch Manufacturing has $11$ percent preferred stock and $12$ percent bonds outstanding, neither of which

is convertible. Punch reported after$-$tax income, excluding investment income from Short, of $$125,000$

in $204$ and paid dividends of $$64,000.$ The companies file separate tax returns and are subject to a $40$

percent income tax.

Required:

Compute basic and diluted EPS for the consolidated entity. $($Round your intermediate calculations and

final answers to two decimal places.$)$

Answer is complete but not entirely correct.Punch Manufacturing Corporation owns $80$ percent of the common shares of Short Retail Stores. The companies$$ balance sheets as of December $31,20$X$4,$ were as follows: