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Fortune company had 300,000 ordinary shares outstanding on January 1, 20B. In addition on January 1, 20B, the entity had issued 6,000 convertible 10% bonds with P1,000 face value. The entity has no other potentially dilutive securities. The bonds were converted on October 1, 20B and 40 ordinary shares were issued in exchange for each bond. Accrued interest on the bonds was recognized and paid on that date. Net income for 20B was P7,500,000. The income tax rate is 30%. What is the amount of diluted earnings per share?   14.47   21.65   14.72   14.61

Fortune company had 300,000 ordinary shares outstanding on January 1, 20B. In addition on January 1, 20B, the entity had issued 6,000 convertible 10% bonds with P1,000 face value. The entity has no other potentially dilutive securities. The bonds were converted on October 1, 20B and 40 ordinary shares were issued in exchange for each bond. Accrued interest on the bonds was recognized and paid on that date. Net income for 20B was P7,500,000. The income tax rate is 30%. What is the amount of diluted earnings per share?   14.47   21.65   14.72   14.61

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2TP: Below is select information from two, independent companies. Additional information includes: On...
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Fortune company had 300,000 ordinary shares outstanding on January 1, 20B. In addition on January 1, 20B, the entity had issued 6,000 convertible 10% bonds with P1,000 face value. The entity has no other potentially dilutive securities. The bonds were converted on October 1, 20B and 40 ordinary shares were issued in exchange for each bond. Accrued interest on the bonds was recognized and paid on that date. Net income for 20B was P7,500,000. The income tax rate is 30%. What is the amount of diluted earnings per share?

 

  1. 14.47

     

  2. 21.65

     

  3. 14.72

     

  4. 14.61

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