Basic EPS In determining basic earnings per share, dividends on nonconvertible cumulative preferred stock should be: a. Deducted from net income only if declared b. Disregarded c. Added back to net income whether declared or not d. Deducted from net income whether declared or not Weighted Average Shares For purposes of computing the weighted average number of shares outstanding during the year, a midyear event that must be treated as occurring at the beginning of the year is the: a. Issuance of stock warrants b. Declaration and issuance of a stock dividend Cc. Purchase of treasury stock d. Sale of additional common stock Calculator Avallable-for-sale Securities When accounting for an investment in available-for-sale securities, a. gains and losses on sales of investments are reported as a component of other comprehensive Income of the current period. b. Interest and dividend income are included in net income of the current period. Cc. unrealized holding gains and losses resulting from changes in the fair value of the securities are included in net income of the current period. d. all of the choices are correct