ABC Company had the following capital structure during 2020 and 2021: Preference share capital, P10 par, 4% cumulative, 25 shares issued and outstanding 250,000 Ordinary share capital, P5 par, 200,000 shares issued and outstanding 1,000,000 The entity reported net income of P500,000 for the year ended December 31, 2021. The entity paid no preference dividends during 2020 and paid P16,000 in preference dividends during 2021. What amount should be reported as basic earnings per share?

ABC Company had the following capital structure during 2020 and 2021: Preference share capital, P10 par, 4% cumulative, 25 shares issued and outstanding 250,000 Ordinary share capital, P5 par, 200,000 shares issued and outstanding 1,000,000 The entity reported net income of P500,000 for the year ended December 31, 2021. The entity paid no preference dividends during 2020 and paid P16,000 in preference dividends during 2021. What amount should be reported as basic earnings per share?

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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