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%. The diluted earnings per share for 2020 is?

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%. The diluted earnings per share for 2020 is?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and
P1,000,000 of 5% convertible bonds outstanding during 2020o.
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%.
The diluted earnings per share for 2020 is?

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