a. P11.40b. P12.00c. P13.41d. P14.25 ABC Company had 600,000 ordinary shares outstanding on January 1, 2020.During 2020, ABC Company issued rights to acquire on ordinary share at P10 in the ratio of1 new share for every 4 shares outstanding.The market value of ordinary share immediately prior to the rights issue is P35.The rights were exercised on October 1, 2020. The net income of ABC Company for 2020is P8,550,000.In its 2020 income statement, how much should ABC Company report as basicearnings per share?

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Answered: In its 2020 income statement, how much…

Business

Accounting

In its 2020 income statement, how much should ABC Company report as basic earnings per share?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 24E

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