On January 1, ABC Company has 100,000 outstanding ordinary shares. During the year, ABC reported net income of P 5,000,000. Income tax rate is 30%. In addition, ABC issued on April 1 4,000 P 100 par 10% cumulative preference shares. Each preference share is convertible into 5 ordinary shares. How much is the basic earnings per share?

On January 1, ABC Company has 100,000 outstanding ordinary shares. During the year, ABC reported net income of P 5,000,000. Income tax rate is 30%. In addition, ABC issued on April 1 4,000 P 100 par 10% cumulative preference shares. Each preference share is convertible into 5 ordinary shares. How much is the basic earnings per share?

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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