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Summer Ltd.'s 2019 net income is $600,000. The weighted average number of ordinary shares used for the calculation of basic earnings per share is 150,000
Summer Ltd.'s 2019 net income is $600,000. The weighted average number of ordinary shares used for the calculation of basic earnings per share is 150,000 shares. The fiscal year ended is on December 31. During the year 2019, the following events occurred: 1. On April 1, 2019, the company issued cumulative convertible preference shares $300,000, 10%, $100 per shares, each preference share is convertible into 2 shares of ordinary share, exercisable on January 1, 2023. 2. On July 1, 2019, 80,000 share options were issued. Each share option entitled the holder to purchase one ordinary share at HK$10, effective October 1, 2020. The average market value of one ordinary share in 2019 was HK$16. Required: Compute diluted earnings per share for 2019 in accordance with HKAS 33. Show all your workings. Express your answers in dollar and round to 2 decimal places. (Note that the information given in Part A is not relevant to the question in Part B.) 17 marks
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