The income tax rate is 30%. 1. Basic earnings per share Amaze Company reported the following information at year-end: 2021 2020 Ordinary shares outstanding Noncon vertible preference outstanding shares 10% convertible bonds payable - face amount 1,000,000 1,000,000 360,000 10,000 300,000 10,000 The entity provided the following additional information: On September 1, 2021, the entity sold 60,000 additional ordinary shares. Net income for the year ended December 31, 2021 was P6,700,000. During 2021, the entity paid dividends of P30 per share on the nonconvertible preference share. The 10% convertible bonds are convertible into 40 ordinary shares for each P1,000 bond. Unexercised share options to purchase 30,000 ordinary shares at P20 per share were outstanding at the beginning and end of 2021. The average market price of ordinary share was P30 during 2021. The market price was P40 on December 31, 2021. Warrants to purchase 20,000 ordinary shares at P45 per share were attached to the preference share at the time of issuance. The warrants, which expire on December 31, 2023, were outstanding on December 31, 2021. Required: 2. Diluted earnings per. *, share

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The income tax rate is 30%.
2. Diluted earnings per, share
1. Basic earnings per share
Amaze Company reported the following information at
yeár-end:
2021
2020
Ordinary shares outstanding
Nonconvertible preference outstanding shares
10% convertible bonds payable - face amount 1,000,000 1,000,000
360,000
10,000
300,000
10,000
The entity provided the following additional information:
On September 1, 2021, the entity sold 60,000 additional
ordinary shares.
Net income for the year ended December 31, 2021 was
P6,700,000.
During 2021, the entity paid dividends of P30 per share
on the nonconvertible preference share.
The 10% convertible bonds are convertible into 40
ordinary shares for each P1,000 bond.
Unexercised share options to purchase 30,000 ordinary
shares at P20 per share were outstanding at the beginning
and end of 2021.
The average market price of ordinary share was P30
during 2021. The market price was P40 on December 31,
2021.
Warrants to purchase 20,000 ordinary shares at P45 per
share were attached to the preference share at the time
of issuance.
*
The warrants, which expire on December 31, 2023, were
outstanding on December 31, 2021.
*
Required:
Transcribed Image Text:The income tax rate is 30%. 2. Diluted earnings per, share 1. Basic earnings per share Amaze Company reported the following information at yeár-end: 2021 2020 Ordinary shares outstanding Nonconvertible preference outstanding shares 10% convertible bonds payable - face amount 1,000,000 1,000,000 360,000 10,000 300,000 10,000 The entity provided the following additional information: On September 1, 2021, the entity sold 60,000 additional ordinary shares. Net income for the year ended December 31, 2021 was P6,700,000. During 2021, the entity paid dividends of P30 per share on the nonconvertible preference share. The 10% convertible bonds are convertible into 40 ordinary shares for each P1,000 bond. Unexercised share options to purchase 30,000 ordinary shares at P20 per share were outstanding at the beginning and end of 2021. The average market price of ordinary share was P30 during 2021. The market price was P40 on December 31, 2021. Warrants to purchase 20,000 ordinary shares at P45 per share were attached to the preference share at the time of issuance. * The warrants, which expire on December 31, 2023, were outstanding on December 31, 2021. * Required:
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