Plush Corporation Holds 80 Percent of Scratch Company's Voting Common

Multiple Choice

Plush Corporation holds 80 percent of Scratch Company's voting common shares,acquired at book values,but none of its preferred shares.At the date of acquisition,the fair value of the noncontrolling interest was equal to 20 percent of the book value of Scratch Company.Summary balance sheets for the companies on December 31,20X8,are as follows:
Neither of the preferred issues is convertible.Plush's preferred pays a 8 percent annual dividend,and Scratch's preferred pays a 12 percent dividend.Scratch reported net income of $30,000 and paid a total of $10,000 of dividends in 20X8.Plush reported income from its separate operations of $70,000 and paid total dividends of $25,000 in 20X8.
-Based on the preceding information,what is the consolidated earnings per share for 20X8?

A) $4.46
B) $4.14
C) $4.35
D) $4.55