Levi Co. is calculating earnings per share for inclusion in the annual report to share holders. The entity obtained the following information from the controller's office: Net income from January 1 to December 31-P1,250,000 Number of shares outstanding January 1 to March 31 - 150, 000 April 1 to May 31 120,000 June 1 to December 31 - 180,000 In addition, the entity issued 100,000 incentive share options with an exercise price of P30 The year end market price was P25 per share and the average market price price was P20 per share What amount should be reported as diluted earnings per share?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Levi Co. is calculating earnings per share for inclusion in the annual report to share holders.

The entity obtained the following information from the controller's office: Net income from January 1 to December 31-P1,250,000

Number of shares outstanding

January 1 to March 31 - 150, 000

April 1 to May 31 120,000

June 1 to December 31 - 180,000

In addition, the entity issued 100,000 incentive share options with an exercise price of P30 The year end market price was P25 per share and the average market price price was P20 per share

What amount should be reported as diluted earnings per share?

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for stockholder's equity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education