JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021 15,000,000 Net income for 2022 18,000,000 Ordinary shares outstanding during 2020 600,000 On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11. 1. Compute the basic earnings per share for 2021. 2. Compute the basic earnings per share for 2022.
JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021 15,000,000 Net income for 2022 18,000,000 Ordinary shares outstanding during 2020 600,000 On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11. 1. Compute the basic earnings per share for 2021. 2. Compute the basic earnings per share for 2022.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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JJJ Company provided the following information:
Net income for 2020 | 11,000,000 |
Net income for 2021 | 15,000,000 |
Net income for 2022 | 18,000,000 |
Ordinary shares outstanding during 2020 | 600,000 |
On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11.
1. Compute the basic earnings per share for 2021.
2. Compute the basic earnings per share for 2022.
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