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Entity 1 has 1,000,000 ordinary shares at 1 each as on 1 January 2022. These...

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Accounting

Entity 1 has 1,000,000 ordinary shares at 1 each as on 1 January 2022. These shares were originally issued at 3 per share. It also has a convertible loan of 2,000,000 with an interest rate of 6% per annum. The loan is convertible in 5 years at the rate of 1 ordinary share for every 4.00 of the loan. On 1 April 2022 the company repurchased 250,000 ordinary shares at 4 each. The profit after tax for the year is 469,500. The tax rate for Entity 1 is 20%. Required Determine the basic and diluted earnings per share for Entity 1 for the year ended 31 December 2022. Show all relevant workings

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