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XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000 ordinary shares were issued on April 1, 2020, and 400,000 ordinary shares more on July 1, 2020. On October 1, 2020, XYZ Inc. issued 20,000, P1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were converted into ordinary shares in 2020. What is the number of shares to be used in computing basic EPS and diluted EPS, respectively? A. 4,400,000 and 4,400,000       B. 4,400,000 and 4,500,000       C. 4,400,000 and 4,800,000       D. 4,800,000 and 5,600,000       E. answer not given

XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000 ordinary shares were issued on April 1, 2020, and 400,000 ordinary shares more on July 1, 2020. On October 1, 2020, XYZ Inc. issued 20,000, P1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were converted into ordinary shares in 2020. What is the number of shares to be used in computing basic EPS and diluted EPS, respectively? A. 4,400,000 and 4,400,000       B. 4,400,000 and 4,500,000       C. 4,400,000 and 4,800,000       D. 4,800,000 and 5,600,000       E. answer not given

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000 ordinary shares were issued on April 1, 2020, and 400,000 ordinary shares more on July 1, 2020. On October 1, 2020, XYZ Inc. issued 20,000, P1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were converted into ordinary shares in 2020. What is the number of shares to be used in computing basic EPS and diluted EPS, respectively?

A. 4,400,000 and 4,400,000
 
 
 
B. 4,400,000 and 4,500,000
 
 
 
C. 4,400,000 and 4,800,000
 
 
 
D. 4,800,000 and 5,600,000
 
 
 
E. answer not given
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