. What amount should be reported as basic earnings per share for 2017? 2. What is the total number of potential ordinary shares? 3. What amount should be reported as diluted earnings per share for 201

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. What amount should be reported as basic earnings per share for 2017?

2. What is the total number of potential ordinary shares?

3. What amount should be reported as diluted earnings per share for 2018?

An entity reported the following information on December 31, 2017:
Ordinary Share Capital
Convertible noncumulative preference share capital
10% convertible bonds payable
110,000 shares
20,000 shares
P 2,000,000
Share options to purchase 60,000 shares at P15 were outstanding. Market price
of ordinary share was P22 on
year. No value was assigned to the share options. The entity pad preference
dividends of P5 per share. The preference shares are convertible into 40,000
ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares.
The net income for 2017 is P650,000. The tax rate is 30%.
December 31, 2017 and averaged P20 during the
Transcribed Image Text:An entity reported the following information on December 31, 2017: Ordinary Share Capital Convertible noncumulative preference share capital 10% convertible bonds payable 110,000 shares 20,000 shares P 2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of ordinary share was P22 on year. No value was assigned to the share options. The entity pad preference dividends of P5 per share. The preference shares are convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for 2017 is P650,000. The tax rate is 30%. December 31, 2017 and averaged P20 during the
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