ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is (rounded to the nearest penny) A. P1.39 B. P1.41 C. P1.53 D. P1.67 E. answer not given
ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is (rounded to the nearest penny) A. P1.39 B. P1.41 C. P1.53 D. P1.67 E. answer not given
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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Question
ABC Co. had 200,000 ordinary shares, 20,000 convertible
shares
2020. The preference shares are convertible into 40,000 ordinary shares.
During 2020, ABC paid dividends of P.60 per share on the ordinary shares
and P2 per share on the preference shares. Each P1,000 bond is
convertible into 45 ordinary shares. The net income for 2020 was
P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is
(rounded to the nearest penny)
A. P1.39
B. P1.41
C. P1.53
D. P1.67
E. answer not given
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