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.

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

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 diluted EPS.