On December 31, 2020, ZEN Inc. reported a net income of P2,000,000. The following data are provided by ZEN concerning its shareholders’ equity: Ordinary shares at P10/par, P1,000,000; Share premium, 500,000; Subscribed ordinary shares, 300,000; Subscription receivable collectible beyond one year, 50,000; Treasury shares at cost (P12/share), 300,000; Cumulative-participating preference shares – 10%, P2,000,000; and Outstanding preference shares 100,000. The dividends on preference shares are in arrears for two years before December 31, 2020. No dividends were on preference shares were declared on year 2020. What is the basic earnings per share for preference shareholders for the year ended December 31, 2020?

a. P6.00

b. P2.00

c. None