Problem 2 At December 31, 2019, Morgan Corp. had 2,000,000 ordinary shares outstanding. On January 1, 2020, Morgan issued 500,000 preference shares, which were convertible into 1,000,000 ordinary...

Extracted text: Problem 2 At December 31, 2019, Morgan Corp. had 2,000,000 ordinary shares outstanding. On January 1, 2020, Morgan issued 500,000 preference shares, which were convertible into 1,000,000 ordinary shares. During 2020, Morgan declared and paid P1,500,000 cash dividends on the ordinary shares and P500,000 cash dividends on the preference shares. Net income for the year ended December 31, 2020 was P5,000,000. Assuming an income tax rate of 32%, how much is the basic and diluted earnings per share for the year ended December 31, 2020?