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)

Q: Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2…

A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…

Q: Ordinary Share Capital, P20 par. Share Premium. P8,000,000 2,400,000 1,275,000 Retained Earnings.…

A: when companies purchase its own share from the stock market it is called buy back. Buyback allows…

Q: Delta NV has share capital of $l m in shares of $0.25 each. At 31 May 2019 shares had a market value…

A: Right Issue :— It is the new shares issued to existing equity shareholders at lower price.…

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

A: Formula: Ex- Right Price= Old Shares×Market Price+New Shares×Issue PriceOld Shares+ New Shares EPS=…

Q: Gleneagles Corporation earned net income of $70,000 during the year ended December 31, 2020. On…

A: The dividend is declared to the shareholders from the retained earnings of the business. The net…

Q: A company has outstanding 366 $1,000 bonds, each convertible into 28 shares of $12 par value common…

A: Bonds payable = 366 * $ 1000 = $ 366000 Common Stock = 366 * 28 shares * $ 12 par value = $ 122976