What amount should be reported as basic earnings per share

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Reference no: EM133187263

Question - Skilled Company is calculating earnings per share for inclusion in the annual report to shareholders.

The entity obtained the following information from the controller's office:

Net Income from January 1 to December 31 P1,350,000

Number of outstanding shares:

January 1 to March 31 120,000

April 1 to May 31 150,000

June 1 to December 31 180,000

In addition, the entity issued 100,000 incentive share options with an exercise price of P30. The year- end market price was P25 per share and the average market price was P20 per share.

Required -

1. What amount should be reported as basic earnings per share?

2. What amount should be reported as diluted earnings per share?

Reference no: EM133187263

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