Kate Corp. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 10% convertible bonds outstanding during 2021. The preference share is convertible into 40,000 ordinary shares. During 2021, Kate paid dividends of P1.20 per share on ordinary shares and P4.00 per share on preference shares. Each P1,000 bond is convertible into 45 ordinary shares if converted before 2023 and 40 shares if converted after 2023. The profit for 2021 was P800,000 and the income tax rate was 25%.

Required:

Compute the basic and diluted EPS to be presented in Kate Corp.'s statement of profit or loss for the year ended Dec. 31, 2021.

Answer rating: 100% (QA)

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