ABC Company had 600,000 ordinary shares outstanding on January 1, 2020. During 2020, ABC issued rights to acquire one ordinary share at P10 in the ratio of one new share for every 4 shares outstanding. The market value of the ordinary share immediately prior to the rights issue is P35. The rights were exercised on October 1, 2020. The net income of ABC Company for the year is P8,550,000. ABC shall report basic earnings per share in its income statement at (round answer to a whole number)

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A: Retained earnings, also called as reserves and surplus, refer to the accumulated amount left out of…

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A: Formula: Share capital = Number of shares issued x Issue price.

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A: The retained earning represents the accumulated profit that is not distributed and retained in the…

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Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: A publicly traded company can raise more money through a right issue of shares, also known as a…

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A: Earnings per share refer to the value of each share in relation to profit earned per outstanding…

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Q: ABC Company had 600,000 ordinary shares outstanding on January 1, 2020. During 2020, ABC Company…

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Q: how much should ABC Company report as basic Earnings Per Share?

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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Q: At January 1,2019, the Retained Earnings account has a balance of P 3,500,000. During the year, a…

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Q: ABC Company had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no…

A: Basic earnings per share is the per share amount that is available for the ordinary shareholders…

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