I) Nalu Company had 100,000 ordinary shares outstanding on January 1, 2001. On January 1, 2001, the entity issued share options allowing employees to purchase 40,000 ordinary shares. The option price is P10 per share. The average share price was P20. Net income was P2,000,000.

What is the amount of basic earnings per share?

a. 20.00

b. 15.38

c. 14.28

d. 16.67

II) Gueva Company had 100,000 ordinary shares outstanding on January 1, 2001. On January 1, 2001, the entity issued share options allowing employees to purchase 40,000 ordinary shares. The option price is P10 per share. The options were exercised on April 1, 2001. The average share price was P20. The share price on April 1, 2001 was P16. Net income was P2,000,000.

What is the amount of basic earnings per share?

a. 20.00

b. 15.38

c. 14.28

d. 16.67

What is the amount of diluted earnings per share?

a. 14.95

b. 12.90

c. 14.28

d. 12.95