Smart Company reported profit before tax of P5,800,000 and incom tax expense of P1,500,000 for the current year. In addition, the ent dividend of P500,000 on the preferences shares. The entity b paid during the year an ordinary dividend of P400,000 and a preferen P1,000,000 of P5 par value ordinary shares in issue. 1. What amount should be reported as basic earnings per share if th preference shares are redeemable? 2. What amount should be reported as basic earnings per share if the preference shares are nonredeemable? During the current year, Globe Company had the following two classes of share capital issued and outstanding for the entire year: Ordinary share capital, 200,000 shares, P10 par Preference share capital, 2,000 shares, P100 par, 12% convertible share for share into ordinary share 2,000,000 200,000 The net income for the current year was P1,800,000 and the income tax rate was 30%. in the computation of basic earnings per share, what is the amount to be used as earnings?