Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic
Question:
The following transactions have also occurred at Fitzgerald.
1. Options were granted on July 1, 2018, to purchase 200,000 shares at ¬15 per share. Although no options were exercised during fiscal year 2019, the average price per ordinary share during fiscal year 2019 was ¬20 per share.
2. Each bond was issued at face value. The convertible bonds will convert into ordinary shares at 50 shares per ¬1,000 bond. It is exercisable after 5 years and was issued in 2017. The interest on the liability component of the convertible bonds payable for the fiscal year ending June 30, 2019, was ¬450,000.
3. The preference shares were issued in 2017.
4. There are no preference dividends in arrears; however, preference dividends were not declared in fiscal year 2019.
5. The 1,000,000 ordinary shares were outstanding for the entire 2019 fiscal year.
6. Net income for fiscal year 2019 was ¬1,500,000, and the average income tax rate is 40%.
Instructions
For the fiscal year ended June 30, 2019, calculate the following for Fitzgerald Pharmaceutical Industries.
a. Basic earnings per share.
b. Diluted earnings per share.
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield