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KKK Company reported the following at year-end:  10% Bonds payable 1,000,000 Ordinary share capital, P100 par, 50,000 shares 5,000,000 Net income 1,730,000 The bonds are convertible into ordinary shares in the ratio of 10 ordinary shares for each P1,000 bond. The income tax rate is 30%. Questions:  1. Compute for the basic earnings per share.  2. Compute for the diluted earnings per share.

KKK Company reported the following at year-end:  10% Bonds payable 1,000,000 Ordinary share capital, P100 par, 50,000 shares 5,000,000 Net income 1,730,000 The bonds are convertible into ordinary shares in the ratio of 10 ordinary shares for each P1,000 bond. The income tax rate is 30%. Questions:  1. Compute for the basic earnings per share.  2. Compute for 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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KKK Company reported the following at year-end: 

10% Bonds payable 1,000,000
Ordinary share capital, P100 par, 50,000 shares 5,000,000
Net income 1,730,000

The bonds are convertible into ordinary shares in the ratio of 10 ordinary shares for each P1,000 bond. The income tax rate is 30%.

Questions: 

1. Compute for the basic earnings per share. 

2. Compute for the diluted earnings per share.

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