Topic: Earnings per Share

Information relating to the capital structure of Dervish Co. on Dec. 31,2021 , is as follows: Share options to purchase 80,000 shares at P60 were outstanding throughout the year. Market price of Dervish's shares was P100 on Dec. 31 and averaged P80 during the year. The fair value of the options was negligible. The cumulative preference shares are convertible into 100,000 ordinary shares. The bonds are convertible into 80,000 ordinary shares. None were converted during the year. Tax rate is 30%. Net income for the year was P600,000