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Real Razel company's capital structure at January 1, 20A was as follows: Shares issued and outstanding for Ordinary share capital, 400,000 and for preference share capital, 100,000. On October 1, 20A, Real Razel issued a 10% share dividend on its ordinary share, and paid annual cash dividend of P400,000 on its preference share. The preference share capital is noncumulative, nonparticipating and nonconvertible. Net income for the year ended December 1, 20A was P3,840,000. What amount should be reported as basic earnings per share? CHOICES: 8.20 8.72 9.36 7.82

Real Razel company's capital structure at January 1, 20A was as follows: Shares issued and outstanding for Ordinary share capital, 400,000 and for preference share capital, 100,000. On October 1, 20A, Real Razel issued a 10% share dividend on its ordinary share, and paid annual cash dividend of P400,000 on its preference share. The preference share capital is noncumulative, nonparticipating and nonconvertible. Net income for the year ended December 1, 20A was P3,840,000. What amount should be reported as basic earnings per share? CHOICES: 8.20 8.72 9.36 7.82

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 11EX
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Question 16

Real Razel company's capital structure at January 1, 20A was as follows: Shares issued and outstanding for Ordinary share capital, 400,000 and for preference share capital, 100,000. On October 1, 20A, Real Razel issued a 10% share dividend on its ordinary share, and paid annual cash dividend of P400,000 on its preference share. The preference share capital is noncumulative, nonparticipating and nonconvertible. Net income for the year ended December 1, 20A was P3,840,000. What amount should be reported as basic earnings per share?

CHOICES:

  1. 8.20

  2. 8.72

  3. 9.36

  4. 7.82

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