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Question - An entity had the following securities outstanding as of December 31, 2021: 10% convertible bonds payable, each P1,000 bond convertible into ten ordinary shares = 4,000,000
Ordinary share capital P100 par, 250,000 shares authorized, 100,000 shares issued = 10,000,000
Net income = 5,000,000
Income tax rate = 30%
Requirements -
1. Compute for the Basic earnings per share.
2. Compute for the Diluted earnings per share.
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