Question: The following is the Statement of Changes in Equity for the year ended 31 December 2009 and 31 December 2010.
|
Ordinary
|
10% Cumulative
|
|
|
|
|
Shares
|
Preference
|
Retained
|
Share
|
|
|
of RM1 each
|
Share
|
earnings
|
premium
|
Total
|
|
$
|
$
|
$
|
$
|
$
|
|
1 January 2009
|
600,000
|
500,000
|
250,000
|
100,000
|
1,450,000
|
|
Issue of new shares
|
200,000
|
|
|
200,000
|
400,000
|
|
Profit for the year
|
|
|
150,000
|
|
150,000
|
|
Interim dividend
|
|
|
|
|
|
|
Preference share
|
-
|
-
|
(37,500)
|
-
|
(37,500)
|
|
Ordinary share
|
-
|
-
|
(60,000)
|
-
|
(60,000)
|
|
31 December 2009
|
800,000
|
500,000
|
302,500
|
300,000
|
1,902,500
|
|
1 January 2010
|
800,000
|
500,000
|
302,500
|
300,000
|
1,902,500
|
|
Bonus issue
|
100,000
|
-
|
-
|
-
|
100,000
|
|
Profit for the year
|
-
|
-
|
200,000
|
-
|
200,000
|
|
Interim dividend
|
|
|
|
|
|
|
Preference share
|
-
|
-
|
(18,750)
|
-
|
(18,750)
|
|
Ordinary share
|
-
|
-
|
(67,500)
|
-
|
(67,500)
|
|
31 December 2010
|
900,000
|
500,000
|
416,250
|
300,000
|
2,116,250
|
Additional information:
1. The company issued 200,000 ordinary shares at $2 on 1 October 2009.
2. The company declared a bonus issue of 100,000 ordinary shares on 1 December 2010.
3. Tax rate for 2009 and 2010 is 25%.
Required: Calculate the basic earnings per share for the year 2009 and 2010.