The following information was obtained from the statement of financial position of NORWAY, INC. on December 31, 2017: 6% convertible 10-year bonds at par Ordinary share capital, P20 par, 110,000 shares issued and outstanding Retained earnings P2,000,000 2,200,000 950,000 Each P1,000 bond can be converted into 40 ordinary shares. On September 30, 2018, the bonds were all converted into ordinary shares. Norway reported net income of PG00,000 in 2018. The income tax rate is 30%. 16. What is Norway's basic earnings per share for 2018? . P3.16 с. Р5.07 b. РА.62 d. P5.45 17. What is Norway's diluted earnings per share for 2018? a. P2.83 с. Р3.16 b. Р3.63 d. P3.49
The following information was obtained from the statement of financial position of NORWAY, INC. on December 31, 2017: 6% convertible 10-year bonds at par Ordinary share capital, P20 par, 110,000 shares issued and outstanding Retained earnings P2,000,000 2,200,000 950,000 Each P1,000 bond can be converted into 40 ordinary shares. On September 30, 2018, the bonds were all converted into ordinary shares. Norway reported net income of PG00,000 in 2018. The income tax rate is 30%. 16. What is Norway's basic earnings per share for 2018? . P3.16 с. Р5.07 b. РА.62 d. P5.45 17. What is Norway's diluted earnings per share for 2018? a. P2.83 с. Р3.16 b. Р3.63 d. P3.49
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:ITEMS FOR 16 AND 17 ARE BASED ON THE FOLLOWING INFORMATION:
The following information was obtained from the statement of financial position of NORWAY, INC. on December 31,
2017:
6% convertible 10-year bonds at par
Ordinary share capital, P20 par,
110,000 shares issued and outstanding
P2,000,000
2,200,000
Retained earnings
950,000
Each P1,000 bond can be converted into 40 ordinary shares. On September 30, 2018, the bonds were all converted
into ordinary shares. Norway reported net income of P600,000 in 2018. The income tax rate is 30%.
16. What is Norway's basic earnings per share for 2018?
а. Р3.16
c. P5.07
b. Р4.62
d. P5.45
17. What is Norway's diluted earnings per share for 2018?
a. P2.83
С. Р3.16
b. Р3.63
d. P3.49
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