22. At December 31, 2007, Prof Company had 450,000 shares of ordinary shares outstanding. On September 01, 2008, an additional 150,000 shares of ordinary shares were issued. In addition, Prof had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2007 which are convertible into 300,000 ordinary shares. The carrying value of the bonds as of December 31, 2007 and based on a rate of 8% is P 9,205, 800. No bonds were converted into ordinary shares in 2008. The net income for the year ended December 31, 2008 was P 3,750,000. Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2008 of Prof Company? a. 5.20 c. 5.44 b. 5.31 d. 7.50

22. At December 31, 2007, Prof Company had 450,000 shares of ordinary shares outstanding. On September 01, 2008, an additional 150,000 shares of ordinary shares were issued. In addition, Prof had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2007 which are convertible into 300,000 ordinary shares. The carrying value of the bonds as of December 31, 2007 and based on a rate of 8% is P 9,205, 800. No bonds were converted into ordinary shares in 2008. The net income for the year ended December 31, 2008 was P 3,750,000. Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2008 of Prof Company? a. 5.20 c. 5.44 b. 5.31 d. 7.50

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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PROVIDE COMPUTATION
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