The following information is available for Jill’s Emporium Ltd., which reports its financial results in accordance with IFRS.

Required:

a. Compute Jill’s basic EPS for the year ended December 31, 2018. 

b. Prepare a schedule that sets out the income effect, share effect, and incremental EPS for each security that is convertible into ordinary shares. Rank the potential ordinary shares by their dilutiveness. 

c. Compute Jill’s diluted EPS for the year ended December 31, 2018.

Transcribed Image Text:

Net income for 2018 Income tax rate during 2018 Liabilities and equity outstanding as at December 31, 2018 8% bonds 7% convertible bonds each $1,000 bond is convertible into 7.5 ordinary shares 5% non-cumulative preferred shares 4% cumulative preferred shares each $100 preferred share is convertible into four ordinary shares Ordinary shares The bonds and preferred shares were outstanding for the entire year Dividends were not declared on either series of the preferred shares in 2018 January 1, 2018 March 1, 2018 June 1, 2018 December 1, 2018 Activity Opening balance 20% stock dividend Two-for-one stock split Repurchased 30,000 shares $ 800,000 32% $1,000,000 850,000 500,000 400,000 1,000,000 Ordinary shares outstanding 50,000 60,000 120,000 90,000