During 20B, Glaiza company had the following two classes of share capital issued and outstanding for the entire year: Ordinary share capital, 300,000 shares, P10 par P3,000,000; Preference share capital, 3,000 shares, P100 par, 12% convertible Share for share into ordinary share, P300,000. Glaiza's net income for 20B was P2,700,000, and its income tax rate is 30%. In the computation of basic earnings per share, what is the basic earnings per share? Choices: 9.12   8.88   6.12   9.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

During 20B, Glaiza company had the following two classes of share capital issued and outstanding for the entire year: Ordinary share capital, 300,000 shares, P10 par P3,000,000; Preference share capital, 3,000 shares, P100 par, 12% convertible Share for share into ordinary share, P300,000. Glaiza's net income for 20B was P2,700,000, and its income tax rate is 30%. In the computation of basic earnings per share, what is the basic earnings per share?

Choices:
  1. 9.12

     
  2. 8.88

     
  3. 6.12

     
  4. 9.00

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Corporate Distributions and Adjustments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education