Diluted earnings per share (DEPS) adjusts the basic earnings per share (EPS) to account for the potential dilutive impact of convertible instruments like convertible bonds. In the case of Wrights Ltd., we need to consider the effect of the convertible bonds on the diluted EPS.

The convertible bonds have a face value of MU1 each, with a total face value of MU250,000 (250,000 bonds * MU1 face value). The interest cost of these bonds is MU12,500 (MU250,000 * 5%). To calculate the diluted EPS, we must adjust the profit for the net interest expense saved due to the conversion of the convertible bonds.

First, we add back the interest expense to the profit (MU12,500), then we adjust for the related tax effect (MU12,500 * 30% tax rate). The number of ordinary shares to be added for the calculation is half the number of convertible bonds because each bond converts into one ordinary share for every two bonds.

So, the diluted earnings per share for 30 June 20x2 is calculated as follows:

Diluted earnings per share = (Profit for the period + Adjustments for interest savings - Tax on interest savings) / (Weighted average number of ordinary shares + Weighted average number of shares issuable upon conversion)

Therefore, the correct calculation is:

Diluted earnings per share for 30 June 20x2 is MU1.15 calculated as follows: {[Mu5,895,000 + (MU12,500 - (MU12,500 * 0.30))] ÷ [5,000,000 + (250,000 ÷ 2)]

Option B presents the correct calculation for the diluted earnings per share for 30 June 20x2.