Multiple choice pls answer Gross Profit Variation Analysis and Earnings Per Share Determination269During 2006, DB paid dividends of P3.00 per share on its preferenceshares. The preference shares are convertible into 20.000 ordinaryshares and are considered potential ordinary shares. The 8% bonds areconvertible into 30,000 ordinary shares and considered potentialordinary shares. Net income for 2006 was P850,000 Assume that theincome tax rate is 30%. The diluted earnings per share for 2006 is:a.P7.45.b.P6.54.P7.08.C.d. P5.66.15. KCM, Inc. had 200,000 shares of P20 par ordinary shares and 20.000shares of P100 par 6% cumulative, convertible preference shareoutstanding for the entire year ended December 31, 2005.preference share is convertible into 5 ordinary shares.income for 2005 was P840,000. For the ycar ended December 31.2005, the basic eamings per share isP2.40.b. P2.80.EachKCM's neta.C.P3.60.d. P4.20.Use the following data to answer items 16 and 17.The Blue Company was organized on January 1, 2005, at wvhich time itissued 10,000 shares of P10 par ordinary shares.declared and issued a 10 percent ordinary stock dividend.2005, an additional 2,000 ordinary shares were issued at par.income for the year ended December 31, 2005, was P12,650.On July 1, 2005, BlueOn October 1,The netAs a result of the events described, Blue Company had 13,000 ordinaryshares outstanding as of January 1, 2006. On that date options were grantedto certain employees which entitled them to buy 1,000 ordinary shares at P16per share. The average price of the ordinary shares during 2006 was P20 pershare. The price of the ordinary share on December 31, 2006 was P25 pershare. Net income for the year ended December 31, 2006, was P29,172. Noordinary shares were issued during 2006.

Since multiple questions are posted and 15 is the first complete question, we will be solving the…

15. KCM, Inc. had 200,000 shares of P20 par ordinary shares and 20.000 shares of P100 par, 6% cumulative, convertible preference share outstanding for the entire year ended December 31, 2005. preference share is convertible into 5 ordinary shares. KCM's net income for 2005 was P840,000. For the year ended December 31. 2005, the basic eamings per share is P2.40. b. Р2.80. P3.60. d. P4.20. Each a. с.

15. KCM, Inc. had 200,000 shares of P20 par ordinary shares and 20.000 shares of P100 par, 6% cumulative, convertible preference share outstanding for the entire year ended December 31, 2005. preference share is convertible into 5 ordinary shares. KCM's net income for 2005 was P840,000. For the year ended December 31. 2005, the basic eamings per share is P2.40. b. Р2.80. P3.60. d. P4.20. Each a. с.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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