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Farmer Company had the following share capital as of December 31, 2021: Bonds payable, P1,000 face value, 5,000 bonds, 6% interest rate, each bonds are
Farmer Company had the following share capital as of December 31, 2021:
Bonds payable, P1,000 face value, 5,000 bonds, 6% interest rate, each bonds are convertible into twenty ordinary shares | 5,000,000 |
Ordinary share capital, P50 par, 500,000 shares authorized, 200,000 shares outstanding | 10,000,000 |
The entity reported a net income of P5,400,000 for the current year. The income tax rate is 30%.
Compute for the basic and diluted earnings per share based on the following independent scenarios:
- The bonds were issued in the prior year at par value.
BEPS =
DEPS =
- The bonds were issued on July 1, 2021.
BEPS =
DEPS =
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