On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net income of P 3,000,000. Income tax rate is 30%. In addition, ABC issued on January 1 a 1,800 P 1,000 10% convertible bonds at face amount. Each bond is convertible into 5 ordinary shares. How much is the diluted earnings per share? Group of answer choices 23.26 26.05 25.00 24.23
On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net income of P 3,000,000. Income tax rate is 30%. In addition, ABC issued on January 1 a 1,800 P 1,000 10% convertible bonds at face amount. Each bond is convertible into 5 ordinary shares. How much is the diluted earnings per share? Group of answer choices 23.26 26.05 25.00 24.23
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
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Question
17
On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net income of P 3,000,000. Income tax rate is 30%. In addition, ABC issued on January 1 a 1,800 P 1,000 10% convertible bonds at face amount. Each bond is convertible into 5 ordinary shares.
How much is the diluted earnings per share?
Group of answer choices
23.26
26.05
25.00
24.23
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