1.Everlasting Company discovered the following errors in its financial records at the beginning of the year 2015:

-The physical inventory count on December 31, 2014 excluded a merchandise with a cost of P39,000 that had been temporarily stored in a public warebouse. Everlasting uses the periodic inventory system.

- During 2014, a competitor filed a patent infringement suit against Everlasting claiming damages of P440,000. The company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is P250.000 The company has not reflected or disclosed this situation in the financial statements.

-. A trademark was acquired at the beginning of 2013 for P100,000. No amortization has been recorded since acquisition. It is the company's policy to amortize all intangibles with a definite life or a maximum of 20 years. At the time of acquisition, the trademark was estimated to have a definite life of 20 years.

QUESTION: The January 1, 2015 accumulated profits is understated or overstated by?

2.INRI Corporation has the following capital structure at January 1,2014:

Ordinary share, par P10 800,000 shares

Liability component of 5-year 10% convertible

bonds, each 1,000 bond is convertible into 80

shares of ordinary share P5,162,550

Share premium - conversion option 205,000

The bonds were issued on January2, 2010 and at the time of issue the bonds were selling at rate of interest of 9% without the conversion option.

During 2014, the company had the following stock transactions:

May 1 Issued 60,000 shares of ordinary share at P30 per share

August 1Purchased 120,000 shares of treasury at P35 per share

Dec 31 Converted P2,000,000 bonds

Net income for 2014 was P950,000 Income tax rate is 32%.

QUESTION: How much is the diluted earnings per share?