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ABC Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no additional ordinary shares were issued. On January 1, 2020, ABC Co. issued 400,000 nonconvertible preference shares. During 2020, ABC Co. declared and paid P200,000 cash dividend on ordinary shares and P110,000 on preference shares. Net income for 2020 was P750,000. What should be the basic earnings per share for 2020? A. P0.75 B. P1.07 C. P1.35 D. P1.50

ABC Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no additional ordinary shares were issued. On January 1, 2020, ABC Co. issued 400,000 nonconvertible preference shares. During 2020, ABC Co. declared and paid P200,000 cash dividend on ordinary shares and P110,000 on preference shares. Net income for 2020 was P750,000. What should be the basic earnings per share for 2020? A. P0.75 B. P1.07 C. P1.35 D. P1.50

FINANCIAL ACCOUNTING
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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ABC Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no additional ordinary shares were issued. On January 1, 2020, ABC Co. issued 400,000 nonconvertible preference shares. During 2020, ABC Co. declared and paid P200,000 cash dividend on ordinary shares and P110,000 on preference shares. Net income for 2020 was P750,000. What should be the basic earnings per share for 2020?
A. P0.75
B. P1.07
C. P1.35
D. P1.50

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