On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020, LBC Co. issued 500,000 shares of preference shares, which were convertible into 1,000,000 shares of...

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Extracted text: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020, LBC Co. issued 500,000 shares of preference shares, which were convertible into 1,000,000 shares of ordinary shares. During 2020, LBC Co. declared and paid P1,500,000 cash dividends on the ordinary shares and P500,000 cash dividends on the preference shares. Net income for 2020 was P 5,000,000.1IF income tax rate is 30%, how much is the diluted EPS for the year ended December 31, 2020? А. 1.50 В. 1.67 C. 2.08 D. 2.50