Solve for problem 4-2

Problem 4-2 Amaya Company offered existing shareholders a rights issue of one for 5 shares at a price of P6 per share to be exercised on April 1, 2020. The market value of share was P12 on that date. On January 1, 2019, there are 810,000 ordinary shares outstanding. The entity reported net income P2,250,000 for 2019 and P3,500,000 for 2020. Required: Compute the basic earnings per share for 2019 and 2020. Problem 4-3 At year-end, Lazy Company had 10,000 ordinary shares and 20,000 convertible preference shares outstanding in addition to 10%, convertible bonds payable in the face amount of P2,000,000 During the current year, the entity paid dividends of P5 per share on the preference share. The preference share is convertible into 40,000 ordinary shares. The 9% bonds are convertible into 30,000 ordinary shares. The net income for the current year was P2,410,000 and the income tax rate is 30%. Required: A. Compute the basic earnings per share B. Compute the diluted earnings per share