Reference no: EM132543968

On January 1, 2019, Helen Company had 100,000 ordinary shares outstanding and 50,000 7% 100 par cumulative preference per shares outstanding.

On March 1, 2019 the entity purchased 24,000 treasury ordinary shares at 45 per share and sold 8,000 treasury shares on October 1, 2019 at 50 per share.

Also outstanding on January 1, 2019 were share options to buy 50,000 ordinary shares at 40.

The market price of ordinary share averaged 50 during 2019. No share options were exercised during 2019.

On January 1, 2019, the entity issued 5,000,000 6% bonds at face amount. The bonds are convertible into 25,000 ordinary shares. None of the bonds had been converted during the year.

The net income was 5,400,000 for the current year and the income tax rate is 30%

Question 1. What amount should be reported as basic EPS?

a. 65.85

b. 50.50

c. 61.59

d. 54.00

Question 2. What amount should be reported as diluted EPS?

a. 45.73

b. 33.50

c. 44.96

d. 43.16