Rockland Corporation earned net income of R300,000 in 2010 and had 100,000 ordinary shares outstanding throughout the

Question:

Rockland earned net income of R300,000 in 2010 and had 100,000 ordinary shares outstanding throughout the year. Also outstanding all year was R800,000 of 10% bonds, which are convertible into 16,000 ordinary shares. The interest expense on the liability component of the convertible bonds was R64,000. Rockland’s tax rate is 40 percent. Compute Rockland’s 2010 diluted earnings per share.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...