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An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary shares – 250,000 Share Option (exercise price of P 60), issued on February 1 (Average Market Price, P 75)– 48,000 5% Preference share capital, P100 par, convertible and cumulative, issued on March 1, can be converted into 18,000 ordinary shares (dividends paid on June) – P 3,600,000 12% Bonds Payable, issued on May 1, can be converted into 30,000 ordinary shares– P 3,000,000 Income Tax Rate – 30%   How much is the incremental EPS of convertible bonds payable? (round-off to nearest centavo)

An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary shares – 250,000 Share Option (exercise price of P 60), issued on February 1 (Average Market Price, P 75)– 48,000 5% Preference share capital, P100 par, convertible and cumulative, issued on March 1, can be converted into 18,000 ordinary shares (dividends paid on June) – P 3,600,000 12% Bonds Payable, issued on May 1, can be converted into 30,000 ordinary shares– P 3,000,000 Income Tax Rate – 30%   How much is the incremental EPS of convertible bonds payable? (round-off to nearest centavo)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
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An entity provided the following data for the current year:

Net Income – P 4,000,000

Ordinary shares – 250,000

Share Option (exercise price of P 60), issued on February 1 (Average Market Price, P 75)– 48,000

5% Preference share capital, P100 par, convertible and cumulative, issued on March 1, can be converted into 18,000 ordinary shares (dividends paid on June) – P 3,600,000

12% Bonds Payable, issued on May 1, can be converted into 30,000 ordinary shares– P 3,000,000

Income Tax Rate – 30%

 

How much is the incremental EPS of convertible bonds payable? (round-off to nearest centavo)

 

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