I'm having hard time calculating diluted EPS. The answer below is incorrect. I would appreciate the help as i have spend too much time on this.

Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies' balance sheets as of December 31, 20X4, were as follows: Punch Manufacturing Short Corporation Retail Stores Assets Cash $ 50,090 $ 30,090 Accounts Receivable 106, 090 86, 908 Inventory 270, 080 130, 090 and 195, 908 75, 908 Buildings and Equipment 510, 098 330, 090 Less: Accumulated Depreciation (245, 908) (120, 090) Investment in Short Retail Stores 140, 098 Total Assets 936, 098 531, 090 Liabilities and Equity Accounts Payable $ 96,908 $ 66,090 Bonds Payable 280, 090 209, 098 Preferred Stock ($10 par value) 208, 090 90, Gee Common Stock: $10 par value 150, 098 $5 par value 190, 098 Retained Earnings 218, 080 75, 090 Total Liabilities and Equity 936, 080 531, 080 Short Retail's 8 percent preferred stock is convertible Into 14,000 shares of common stock, and its 10 percent bonds are convertible Into 8,000 shares of common stock. Short reported net Income of $53,000 for 20X4 and paid dividends of $30,600. 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 $105,000 in 20X4 and paid dividends of $65,000. 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. Basic earnings per share $ 7.98 Diluted earnings per share 7.39 x