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at December 31, 2020, Proof Company had 450 000 shares of ordinary shares outstanding. On September 1, 2021, an additional 150 000 shares of ordinary shares were issued. in addition, Proof had P10 000 000 of 6% convertible bonds outstanding at December 31, 2020, which are convertible into 300,000 shares of ordinary shares. the carrying value of the bonds as of December 31, 2020 and based on a rate of 8% is P9 205 800. no bonds were converted into ordinary shares in 2021. the net income for the year ended December 31, 2021 was P3 750 000. assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2021 of Proof Company? a.5.20 b.5.44 c.5.31 d.7.50

at December 31, 2020, Proof Company had 450 000 shares of ordinary shares outstanding. On September 1, 2021, an additional 150 000 shares of ordinary shares were issued. in addition, Proof had P10 000 000 of 6% convertible bonds outstanding at December 31, 2020, which are convertible into 300,000 shares of ordinary shares. the carrying value of the bonds as of December 31, 2020 and based on a rate of 8% is P9 205 800. no bonds were converted into ordinary shares in 2021. the net income for the year ended December 31, 2021 was P3 750 000. assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2021 of Proof Company? a.5.20 b.5.44 c.5.31 d.7.50

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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at December 31, 2020, Proof Company had 450 000 shares of ordinary shares outstanding. On September 1, 2021, an additional 150 000 shares of ordinary shares were issued. in addition, Proof had P10 000 000 of 6% convertible bonds outstanding at December 31, 2020, which are convertible into 300,000 shares of ordinary shares. the carrying value of the bonds as of December 31, 2020 and based on a rate of 8% is P9 205 800. no bonds were converted into ordinary shares in 2021. the net income for the year ended December 31, 2021 was P3 750 000. assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2021 of Proof Company?
a.5.20
b.5.44
c.5.31
d.7.50

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