Style Company reported the following information on December 31, 2021: Ordinary share capital 110,000 shares Convertible noncumulative preference share capital 20,000 shares 10% convertible bonds payable P2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of ordinary share was P22 on December 31, 2021 and average P20 during the year. No value was assigned to the share options. The entity paid preference dividends of P5 per share. The preference share is convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for 2021 is P650,000. The tax rate is 30%. Required: 18. Compute the amount that should be reported as basic earnings per share for 2021. 19. Compute the total number of potential ordinary shares. 20. Compute the amount that should be reported as diluted earnings per share for 2021
Style Company reported the following information on December 31, 2021:
Ordinary share capital 110,000 shares
Convertible noncumulative
10% convertible bonds payable P2,000,000
Share options to purchase 60,000 shares at P15 were outstanding. Market price of ordinary share was P22
on December 31, 2021 and average P20 during the year. No value was assigned to the share options. The
entity paid preference dividends of P5 per share. The preference share is convertible into 40,000 ordinary
shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for 2021 is P650,000.
The tax rate is 30%.
Required:
18. Compute the amount that should be reported as basic earnings per share for 2021.
19. Compute the total number of potential ordinary shares.
20. Compute the amount that should be reported as diluted earnings per share for 2021
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