ABC has the following share capital outstanding during 2021 and 2022: Preference shares P100 par, 10% cumulative - 2,000,000 Ordinary shares, P50 par- 5,000,000 ABC reported profit of P4,000,000 for the year ended December 31, 2022. ABC paid no preferred dividends during 2021 and paid P200,000 in preferred dividends during 2022. What basic earning per share is presented in ABC’s December 31, 2022 statement of profit or loss?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  1. ABC has the following share capital outstanding during 2021 and 2022:

Preference shares P100 par, 10% cumulative - 2,000,000

Ordinary shares, P50 par- 5,000,000

ABC reported profit of P4,000,000 for the year ended December 31, 2022. ABC paid no preferred dividends during 2021 and paid P200,000 in preferred dividends during 2022. What basic earning per share is presented in ABC’s December 31, 2022 statement of profit or loss?

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