An entity reported the following information on January 1, 2017: Ordinary share capital, P10 par, 800,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An entity reported the following information on January 1, 2017: Ordinary share capital, P10 par, 800,000 shares Preference share capital, P50 par, 50,000 shares 12% Bonds payable The preference share capital is 10% cumulative and convertible into 100,000 ordinary shares. Dividends on preference shares are in arrears for two years. The 12% bonds are convertible into 80 ordinary shares for each P1,000 bond. Unexercised share options to purchase 90,000 ordinary shares at P20 per share were outstanding at the beginning and ending of 2017. The average market price of the ordinary share was P30 per share and the market price on December 31, 2017 was P40 per share. 1 May July 1 Oct. 1 Dec. 31 8,000,000 2,500,000 5,000,000 Issued 60,000 ordinary shares at P25 per share. Purchased 100,000 ordinary shares at P15 to be held as treasury. Converted bonds with face amount of P2,000,000. The net income for 2017 was P5,000,000. The tax rate is 30%. What is the amount of basic earnings per share? An entity reported the following information on January 1, 2017: Ordinary share capital, P10 par, 800,000 shares Preference share capital, P50 par, 50,000 shares 12% Bonds payable The preference share capital is 10% cumulative and convertible into 100,000 ordinary shares. Dividends on preference shares are in arrears for two years. The 12% bonds are convertible into 80 ordinary shares for each P1,000 bond. Unexercised share options to purchase 90,000 ordinary shares at P20 per share were outstanding at the beginning and ending of 2017. The average market price of the ordinary share was P30 per share and the market price on December 31, 2017 was P40 per share. 1 May July 1 Oct. 1 Dec. 31 8,000,000 2,500,000 5,000,000 Issued 60,000 ordinary shares at P25 per share. Purchased 100,000 ordinary shares at P15 to be held as treasury. Converted bonds with face amount of P2,000,000. The net income for 2017 was P5,000,000. The tax rate is 30%. What is the amount of basic earnings per share?
Expert Answer:
Answer rating: 100% (QA)
SOLUTION To calculate the amount of basic earnings per share we need to first determine the weighted ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Determine the outstanding balance at the end of seven years on a $500,000 loan (paid monthly and fully amortized over 30 years), originated at 9.0 percent annual interest, with one discount point.
-
The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...
-
A moment diagram shows the variation of the internal bending moment at each location within a beam as a result of static (non-moving) loads. An influence line can show the variation of the internal...
-
Assess the following statement: Although many investors may be irrational, it is unlikely that over time they will behave irrationally in exactly the same way such as always buying stocks the day...
-
The earnings per share data required of a company depend on the nature of its capital structure. A corporation may have a simple capital structure and compute only basic earnings per share or it may...
-
Find a 3 x 3 matrix A that performs the following translation of a point (x, y) represented by X. Find A -1 and describe what it computes. 6 units to the right and 1 unit upward
-
This case arose after Felix DeWeldon, a well-known sculptor and art collector, sold three paintings to Robert McKean in 1994. Felix DeWeldon declared bankruptcy in 1991. In 1992, DeWeldon, Ltd.,...
-
Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2012, are summarized in the T-account. Required: Using the information above...
-
Airport Passenger Processing: As an IT Manager you were tasked to improve the performance of the local Airport Passenger Processing system . This is to make the Airport more efficient and more...
-
Find the order of magnitude of the number of table- tennis balls that would fit into a typical-size room (without being crushed).
-
Would a polar protic solvent like ethanol favor the solvolysis of 2-chloro-2-methylpropane? Why or why not? View Available Hint(s) O Ethanol would favor the solvolysis; the mechanism is E1. O Ethanol...
-
An experimental procedure for standardization of the titrant states the following: Weigh accurately, about 0.26-0.27 g of the primary-standard. Record the mass to the nearest 0.0001 g. Which mass...
-
Why did the substitution of arsenate for phosphate prevent the accumulation of fructose 1,6-bisphosphate yet allow fermentation to ethanol and CO to go to completion? Arsenate replaces in the...
-
How does exercise in heat result in quicker fatigue than exercise in cooler temperatures? lowers muscle pH hastens glycogen depletion O diverts blood supply to the skin inhibits nerve impulse...
-
In a beverage, what causes a change in the dissolved CO when the bottle is opened? Opening the bottle causes the beverage to absorb the CO gas. The increased CO gas pressure, per Henry's law,...
-
Pure cyclohexane has a freezing point of 6.50 C and a molalfreezing point constant (kf) of 20.2 C/m. You dissolve 1.99 g ofan unknown solid into 50.0 g of cyclohexane. You determine that thefreezing...
-
d) For die casting processes: 1. What are the most common metals processed using die casting and discuss why other metals are not commonly die casted? 2. Which die casting machines usually have a...
-
If Charles, a 16-year-old child model, earns $50,000 a year and is completely self supporting even though he lives with his parents, can his parents claim him as a dependent? Why or why not?...
-
Steve Jackson (age 51) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014. His Social Security number is 465-88-9415. In 2012, Steve's earnings and income tax withholding as the...
-
Clifford Johnson has a limited partnership investment and a rental condominium. Clifford actively manages the rental condominium. During 2012, his share of the loss from the limited partnership was...
-
Taxes are paid each year on some measure of financial gain. We typically think of financial gain as cash inflows minus cash outflows, and yet simply subtracting outflows due to capital investments in...
-
SteelTubes had sales of \($300\) million this year. Expenses were \($250\) million. Aside from these figures, the company also invested in new mills for carbon steel tubing, complete with peripheral...
-
True or False: The Modified Accelerated Cost Recovery System is the most popular depreciation method used in computing corporate income tax liabilities.
Study smarter with the SolutionInn App