For the current year, Voque Company reported basic earnings per share of $8 and diluted earnings per share of $3. The difference between these figures is attributable to outstanding shares of convertible preference share. If all these preference shares had actually been converted into ordinary share at the beginning of the current year, Voque Company would have reported only one earnings per share amount, which would have been:

Question

Quizplus · Accepted Answer

The diluted earnings per share of $3 already reflects the impact of the conversion of the convertible preference shares into ordinary shares. Therefore, if the conversion had occurred at the beginning of the year, the earnings per share would be $3.

For the Current Year, Voque Company Reported Basic Earnings Per