Question: Assume basic EPS has been determined. In determining the diluted earnings per share, the annual dividend on convertible noncumulative preferred shares, which are a dilutive

Assume basic EPS has been determined. In determining the diluted earnings per share, the annual dividend on convertible noncumulative preferred shares, which are a dilutive convertible security, should be:

a) Added back to the numerator of basic EPS only if declared.

b) Deducted from the numerator of basic EPS whether declared or not.

c) Disregarded

d) Added back to the numerator of basic EPS whether declared or not.

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