Question $27$

$2$ pts

Tulip Corp. has $$1,000,000,6\%,$ nonconvertible bonds due in $2017$ and $$1,500,000,3\%,$ convertible bonds due in $2018.$ The basic earnings per share are $$1\mathrm{.}25$ and the diluted earnings per share are $$1\mathrm{.}18.$ Based upon this information, Tulip must disclose

basic earnings per share, and the convertible bonds must be disclosed in the stockholders' equity section of the balance sheet.

basic earnings per share because the convertible bonds are not dilutive.

basic earnings per share and dilutive earnings per share, and the convertible bonds must be disclosed in the stockholders' equity section of the balance sheet.

basic earnings per share and dilutive earnings per share because the convertible bonds are dilutive.