Amaya Company offered existing shareholders a rights issue of one for 5 shares at a price of P6 per share to be exercised on April 1, 2020. The market value of share was P12 on that date. On January 1, 2019, there are 810,000 ordinary shares outstanding. The entity reported net income P2,250,000 for 2019 and P3,500,000 for 2020. Required: Compute the basic earnings per share for 2019 and 2020.
Amaya Company offered existing shareholders a rights issue of one for 5 shares at a price of P6 per share to be exercised on April 1, 2020. The market value of share was P12 on that date. On January 1, 2019, there are 810,000 ordinary shares outstanding. The entity reported net income P2,250,000 for 2019 and P3,500,000 for 2020. Required: Compute the basic earnings per share for 2019 and 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amaya Company offered existing shareholders a rights issue of one for 5 shares at a price of
P6 per share to be exercised on April 1, 2020. The market value of share was P12 on that
date.
On January 1, 2019, there are 810,000 ordinary shares outstanding.
The entity reported net income P2,250,000 for 2019 and P3,500,000 for 2020.
Required: Compute the basic earnings per share for 2019 and 2020.
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