Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding shares: Ordinary Convertible preference 10% convertible bonds payable 600,000 100,000 P3,000,000 500,000 100,000 P3,000,000 During 2021, the entity paíd the annual dividend of P5 on preference share. The preference shares are convertíble into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary shares. The net income for the current year was P5,000,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding shares: Ordinary Convertible preference 10% convertible bonds payable 600,000 100,000 P3,000,000 500,000 100,000 P3,000,000 During 2021, the entity paíd the annual dividend of P5 on preference share. The preference shares are convertíble into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary shares. The net income for the current year was P5,000,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
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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