The following information were taken from the records of Ware Co. on December 31, 2020: Ordinary...
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The following information were taken from the records of Ware Co. on December 31, 2020: Ordinary share capital, P5 par 8% Preference share capital, P100 par 12% Convertible bonds payable P5,000,000 2,000,000 5,000,000 Other information: a. Share options to purchase 100,000 ordinary shares were outstanding at the end of 2020. Each option allows the holder to purchase one ordinary share at P12. All of the options were exercised on April 1, 2021. The average market price of each share from January 1, 2021 to April 1, 2021 is P20. The fair value of Ware's ordinary shares on April 1, 2021 is P24. b. Each preference share is convertible into 10 ordinary shares. The annual dividends on these shares were declared on June 1 and were distributed on June 30. All of them were converted into ordinary shares on October 1, 2021. C. Each P1,000 bond is convertible into 180 ordinary shares. All of the bonds were converted on November 1, 2021. Tax rate is 30%. d. Ware's net income during the year was P4,200,000. Compute for Ware's basic and diluted earnings per share in 2021. The following information were taken from the records of Ware Co. on December 31, 2020: Ordinary share capital, P5 par 8% Preference share capital, P100 par 12% Convertible bonds payable P5,000,000 2,000,000 5,000,000 Other information: a. Share options to purchase 100,000 ordinary shares were outstanding at the end of 2020. Each option allows the holder to purchase one ordinary share at P12. All of the options were exercised on April 1, 2021. The average market price of each share from January 1, 2021 to April 1, 2021 is P20. The fair value of Ware's ordinary shares on April 1, 2021 is P24. b. Each preference share is convertible into 10 ordinary shares. The annual dividends on these shares were declared on June 1 and were distributed on June 30. All of them were converted into ordinary shares on October 1, 2021. C. Each P1,000 bond is convertible into 180 ordinary shares. All of the bonds were converted on November 1, 2021. Tax rate is 30%. d. Ware's net income during the year was P4,200,000. Compute for Ware's basic and diluted earnings per share in 2021.
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Basic EPS Net Income Number of Ordinary Shares Outstanding Diluted EPS ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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