The issued share capital of Yang Limited (Yang), a listed company, at 1 January 2010 was as follows: $500,000 $2,000,000 2,000,000 ordinary shares 2,000,000 7% irredeemable cumulative preference shares The following events took place during the years 2010 and 2011: 1 April 2010 Yang made a rights issue of ordinary shares in the proportion of 1 for every 4 shares held at a price of 80 cents per share. The middle market price for the shares on the day before the issue was $1 per share. 1 July 2010 Yang issued 500,000 additional 7% irredeemable cumulative preference shares at $1 each. 1 January 2011 Yang made a bonus issue of one ordinary share for every five shares in issue at 31 December 2010. 1 April 2011 Yang issued 600,000 additional ordinary shares at a full market price of $1.20 per share. It also issued $1,000,000 10% convertible unsecured loan stock convertible into ordinary shares as follows: Shares receivable on conversion per $100 nominal value loan stock 31 December 2012 120 shares 31 December 2013 110 shares 31 December 2014 100 shares The liability component of the convertible unsecured loan stock carried in the statement of financial position as at 1 April 2011 was $900,000 and the effective interest rate is 12%. Assume rate of taxation is 20%. Extracts from the drafted statements of profit or loss are as follows: Year ended 31 December Profit before tax Taxation Profit after tax 2010 $ 1,585,000 (256,000) 1.329.000 2011 $ 1,778,000 (328,000) 1.450,000 Required: (a) Calculate the basic earnings per share to disclose in the financial statements of Yang for the year ended 31 December 2010. Assume that issue date of financial statement is also at 31 December 2010. (b) Calculate the basic earnings per share to disclose in the financial statements of Yang for the year ended 31 December 2011 together with the corresponding figure for 2010. (c) Calculate the fully diluted earnings per share of Yang for the year ended 31 December 2011. The issued share capital of Yang Limited (Yang), a listed company, at 1 January 2010 was as follows: $500,000 $2,000,000 2,000,000 ordinary shares 2,000,000 7% irredeemable cumulative preference shares The following events took place during the years 2010 and 2011: 1 April 2010 Yang made a rights issue of ordinary shares in the proportion of 1 for every 4 shares held at a price of 80 cents per share. The middle market price for the shares on the day before the issue was $1 per share. 1 July 2010 Yang issued 500,000 additional 7% irredeemable cumulative preference shares at $1 each. 1 January 2011 Yang made a bonus issue of one ordinary share for every five shares in issue at 31 December 2010. 1 April 2011 Yang issued 600,000 additional ordinary shares at a full market price of $1.20 per share. It also issued $1,000,000 10% convertible unsecured loan stock convertible into ordinary shares as follows: Shares receivable on conversion per $100 nominal value loan stock 31 December 2012 120 shares 31 December 2013 110 shares 31 December 2014 100 shares The liability component of the convertible unsecured loan stock carried in the statement of financial position as at 1 April 2011 was $900,000 and the effective interest rate is 12%. Assume rate of taxation is 20%. Extracts from the drafted statements of profit or loss are as follows: Year ended 31 December Profit before tax Taxation Profit after tax 2010 $ 1,585,000 (256,000) 1.329.000 2011 $ 1,778,000 (328,000) 1.450,000 Required: (a) Calculate the basic earnings per share to disclose in the financial statements of Yang for the year ended 31 December 2010. Assume that issue date of financial statement is also at 31 December 2010. (b) Calculate the basic earnings per share to disclose in the financial statements of Yang for the year ended 31 December 2011 together with the corresponding figure for 2010. (c) Calculate the fully diluted earnings per share of Yang for the year ended 31 December 2011