At year-end, Gaze Company had 100,000 ordinary shares and 20,000 convertible preference shares outstanding in addition tó 10% convertible bonds payable in the face amount of P2,000,000. During the current year, the entity paid dividends of P5 per share on the preference share, The preference share is convertible into 40,000 ordinary shares. The 9% .bonds are convertible into 30,000 ordinary 'shares. The net income for the current year was P2;410,000 and the income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
At year-end, Gaze Company had 100,000 ordinary shares and 20,000 convertible preference shares outstanding in addition tó 10% convertible bonds payable in the face amount of P2,000,000. During the current year, the entity paid dividends of P5 per share on the preference share, The preference share is convertible into 40,000 ordinary shares. The 9% .bonds are convertible into 30,000 ordinary 'shares. The net income for the current year was P2;410,000 and the income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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