Sorcerer's Stone Company had 100,000 shares oF P _2Cl par, -1..

Oor'o, cumulative-and convertible preference share outstanding

'.h-ouohout 2017. Each preferenCe ihare is_ convertible int,.; one erdinary share. During the ygar 2017, the company reported net
rcor.rre of P 2,930,000..' tirii.t', -

56. What is the basic earnlngs per share? r':i,l'

e. 2.46 c.2.29
b. 2.50 d, 2.68
_-
' 57. What is the diluted earnings per share? t-_ ,
a. 2.46 c.2.27
b. 2.5A d. 2.68

The shareholders'equity of Utah Corporation on December 31, 2Ol7 shows the following account balances:
4 :;,.^,
72o/o Preference share capital, 9,000 shares P2O0 par 1,800,000 'i.* ,t-'-' ['r
Ordinary share capltal, 30,000 shares P40 par 1,200,000 | ., . -,.. L\i.. .lfi"'.
Share premium 950,000 , :^. . ,\..r r.
ReLained earnings 1,1,5,qrq0_0 !'-1- '-. ^: : ,t .
- T,'.1
The L2o/a preference share islumulativ€ and'fully.paticipating. Dividends ill arreaF are for 2 years:including the current ,"ur:,i:
If Utah is to be liquidated, the preference shareholders woLrld i'eceive par value plgs a premium of pf 0 p.er share. ,
"'ri .
,'-l:'-" ' i"'t
58. What is the [qok vatg,9 per share of ordinary share?
a. 66.59 c. 99.27
b. 44.80 d. 63.71

Ctt September 30, 2016, Beast Company declared its non-current asset as a dividend with € carrying value of P*2,000,000 and has a
.-i,ll-rent fair value of P 1.800,000. On December 31, 2016, the non*current asset has a fair value of P 1,700,000.,The non-current
.siet vvas distributed oi March t,2017 when its fair value was P 1,600,000.,

r 59. How much as the property dividendsgayable that should be reported on December 31, !O16?
r 2,000,000 b. 1,800,000 c. 1,700,000 - d.1,600,000
60' How much is the gain or logslon distribution taken to profit or loss on March l, 2Ot7?
1,,, a. o 61-oo,ooo c.200,000 d.300;000
l'h. Cogsworth Company granted 1oO share options to each of its S0Q--employees on January l,2OL7. The option plan allows the
. ployees to pu rchase a share of the-entity's P 100 par va iue ordinary share at ?_LlLDer share. On Jan uary 7 2QL7 the fair value of
rrr
, ,
L-acn option is .P30.)The option plan requires the employees receiving the optioirs to be in the service of the company for the next
Lhreeryears. Optiohs are exercisable starting January 1, 2020 and options expire at the end of ?O2L. At January 1, 2017, it was
::rli;rated that )1o../c of the employees will ieave durinq the next. three years.
A.t-a, ano revrsed estimate of employees leavrng the company durrng 2017, 1-
2077: 20 employees left; revised estimate is l5p/orf remaining'employees C;S'.1 i- "
2018: 10 employees left; revised estimate is i0b,a of remaininq en:ployees .',:''t , )( .7 ,;
2019: 1B employees left - 't.i ..| .,\
.t :-,l .
t.

During 2020 through 202L, 4OO employees exercised their options while their options to lapse.; '--; r

61. How much is the compensation expense for the year 20tg?
,e' b. 438,000
?.o,,1,00ft"
On January t, 2016, Mrs. Potts Corporation granted 100 sharE rrrpreciation rights to each of its 200 employees, on the condition
that
the employees remain in the company at least until December 31, 2018.
The number of employees who left in 2016 arrd the estimated number of ernployees still expected to leave until December
31, 201g,
as estimated at the end of 2016 and 2017 are as follows:

2o16: 5 employees left, 1o employees expected to leave until Decemher 31, 2o1B
2oL7t B enlployees left, 5 employees expected to leave until December 31, 2018
2O18: No employee left the company .), 't . ,-

The entity estimates the fair,value_s of the sAR's at the end of each year as follows:
2Ol6: P24.80
2Ol7z P30.40
2018: P32.80
2O19: P36.50

January 1, 2016 P120.00

December 31, 2016 PA2,AO
December 3L,2017 P148.00
December 31, 2018 P153.00
December 31, 2019 P156.00

All share appreciation rights were exercised on Decetilber 31, Ztt9.

62. How much is the compensation expense in 2O18?
a. 244,507 b.613.360 c.617,100 d. 217,367
PREWEEK-FAR ( BATCH 34 ) Paqe 8 of 9