Pandy Corporation owns a 90% interest in Sakaj Corporation's common stock.Throughout 2010,Sakaj had 20,000 shares of common stock outstanding and Pandy had 50,000 shares of common stock outstanding.Sakaj's only dilutive security consists of 10,000 stock options,with an exercise price of $20 per share.The average price of Sakaj's stock is $50 per share in 2010.The options are exercisable for one share of Sakaj's common stock.Pandy's and Sakaj's separate net incomes for the year are $200,000 and $180,000,respectively.
Required:
Compute the amount of basic and diluted earnings per share for Pandy (Consolidated)and Sakaj Corporations.

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The Answer of Pandy Corporation owns a 90% interest in Sakaj Corporation's common stock.Throughout 2010,Sakaj had 20,000 shares of common stock outstanding and Pandy had 50,000 shares of common stock outstanding.Sakaj's only dilutive security consists of 10,000 stock options,with an exercise price of $20 per share.The average price of Sakaj's stock is $50 per share in 2010.The options are exercisable for one share of Sakaj's common stock.Pandy's and Sakaj's separate net incomes for the year are $200,000 and $180,000,respectively.
Required:
Compute the amount of basic and diluted earnings per share for Pandy (Consolidated)and Sakaj Corporations.

Pandy Corporation Owns a 90% Interest in Sakaj Corporation's Common