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41) At December 31, 2018, Proof Company had 450,000 shares of ordinary shares outstanding. On September 1, 2020, an additional 150,000 shares of ordinary shares were issued. In addition, Proof had P10,000,000 of 6% convertible bonds outstanding at December 31, 2018 which are convertible into 300,000 shares of ordinary shares. The carrying amount of the bonds as of December 31, 2018 and based on a rate of 8% is P9,205,800. No bonds were converted into ordinary shares in 2020. The net income for the year ended December 31, 2020 was P3,750,000. Assuming the income tax rate is 32%, what should be the diluted earnings per share for the year ended December 31, 2020? A. 5.20 B. 5.31 C. 5.44 D. 7.50 42) Pilapil, Inc., had 200,000 shares of Po par common stock and 20,000 shares of P100 par, 6%, cumulative, convertible preferred stock outstanding for the entire year ended December 31, 2011. Each share is convertible into five shares of common stock. Pilapil's net income for 2211 was P840,000. For the year ended December 31, 2021, the diluted earnings per share is? A. 4.20 B. 3.60 C. 2.80 D. 2.40 Use the following information for the next two (2) questions: The board of directors of Manlulu approved a share option plan for key executives. On January 1, 2023, 200,000 share options were granted exercisable for 200,000 ordinary shares of P10 par value. The options are exercisable between January 1, 2026 and December 31, 2028 at 80% of the quoted market price on January 1, 2023 which was P15. The fair value of the 200,000 option is P6 per option. Twenty thousand options were forfeited when an executive resigned in 2024. All other options were exercised on July 1, 2027 when the share price jumped unexpectedly to P19. 43) What is the compensation expense for 2024? A. 400,000 B. 720,000 C. 320,000 360,000 44) What is the share premium credited upon the exercise of the share option in 2027? A. 1,440,000 B. 2,700,000 C. 1,560,000 D. 1,600,000 45) On January 1, 2019, Digos Company granted share options to each of the 300 employees working in the sales department. The share options vest at the end of a three-year period provided that the employees remain in the entity's employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P20. If the sales increase by more than 10%, each employee will received 200 share options. If the sales increase by more than 15%, each employee will receive 30 0 share options. On December 31, 2019, the sales increased by more than 10% and no employees have left the entity. On December 31, 2020, the sales increased by more than 15% and 20 employees left the entity. What amount of compensation expense should be recognized for 2020? A. 400,000 B. 800,000 C. 560,000 D. 720,000