Atlanta Company provided the following information at the beginning of the current year: Ordinary share capital, P10 par value, 800,000 shares 8,000,000 12% convertible bonds issued at face value, each P1,000 bond is convertible into 80 ordinary shares 5,000,000 May 1 Issued 90,000 ordinary shares for P30 per share. July 1 Purchased 100,000 ordinary shares of treasury at P35 per share. October 1 Converted P2,000,000 face value of bonds December 1 Net income for the year was P9,500,000. The tax rate is 30% What amount should be reported as basic earnings per share? What amount should be reported as diluted earnings per share?
Atlanta Company provided the following information at the beginning of the current year: Ordinary share capital, P10 par value, 800,000 shares 8,000,000 12% convertible bonds issued at face value, each P1,000 bond is convertible into 80 ordinary shares 5,000,000 May 1 Issued 90,000 ordinary shares for P30 per share. July 1 Purchased 100,000 ordinary shares of treasury at P35 per share. October 1 Converted P2,000,000 face value of bonds December 1 Net income for the year was P9,500,000. The tax rate is 30% What amount should be reported as basic earnings per share? What amount should be reported as diluted earnings per share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Atlanta Company provided the following information at the beginning of the current year:
Ordinary share capital, P10 par value, 800,000 shares 8,000,000
12% convertible bonds issued at face value, each P1,000 bond is convertible into 80 ordinary shares 5,000,000
May 1 Issued 90,000 ordinary shares for P30 per share.
July 1 Purchased 100,000 ordinary shares of treasury at P35 per share.
October 1 Converted P2,000,000 face
December 1 Net income for the year was P9,500,000. The tax rate is 30%
What amount should be reported as basic earnings per share?
What amount should be reported as diluted earnings per share?
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