Use the same information for Audrey Inc. as in P17.3, but also assume the following. 1. On September 30, 200,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 100,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred. 2. There are 10,000 of $1,000, 5% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2021. Beginning January 1, 2024, the conversion rate is six common shares for each bond; and beginning January 1, 2028, it is nine common shares for each bond. The tax rate is 30%. 

Instructions 

a. Calculate the required EPS numbers under IFRS. Round to the nearest cent. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security. 

b. Show the required presentations on the face of the income statement. 

Data From P17.3

Audrey Inc. has 1 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 100,000 additional shares. Up to that point, the bonds had paid interest of $250,000 after tax. Net income for the year was $1,298,678. During the year, the company issued the following: 

1. June 30: 10,000 call options giving holders the right to purchase shares of the company for $30 

2. September 30: 15,000 put options allowing holders to sell shares of the company for $25 On February 1, Audrey also purchased in the open market 10,000 call options on its own shares, allowing it to purchase its own shares for $27. Assume the average market price for the shares during the year was $35.