Reference no: EM133059290
Questions -
Q1) Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30, the company issued 10%, 100,000 convertible preference share par value of P20. The preference shares are convertible into 200,000 shares of ordinary shares. On December 31, 2021, Lilac Company reported a net income of P1,140,000 after tax and paid dividends of P300,000 to ordinary and P100,000 to preference shareholders. What is the diluted earnings per share?
a. 3.04
b. 3.42
c. 3.24
d. 3.51
Q2) On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000.
The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000.
What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31?
a. 200,000
b. 300,000
c. 100,000
d. None