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At year-end, Lazy Company had 10,000 ordinary shares and 20,000 convertible preference shares outstanding in addition to 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: A. Compute the basic earnings per share B. Compute the diluted earnings per share

At year-end, Lazy Company had 10,000 ordinary shares and 20,000 convertible preference shares outstanding in addition to 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: A. Compute the basic earnings per share B. Compute the diluted earnings per share

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 year-end, Lazy Company had 10,000 ordinary shares and 20,000 convertible preference
shares outstanding in addition to 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:
A. Compute the basic earnings per share
B. Compute the diluted earnings per share

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