In calculating basic earnings per share, if the preferred shares are cumulative, the amount that should be deducted as an adjustment to the numerator is the
A) annual preferred dividend.
B) preferred dividends in arrears.
C) annual preferred dividends net of income tax.
D) preferred dividends in arrears net of income tax.

Question

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The Answer of In calculating basic earnings per share, if the preferred shares are cumulative, the amount that should be deducted as an adjustment to the numerator is the
A) annual preferred dividend.
B) preferred dividends in arrears.
C) annual preferred dividends net of income tax.
D) preferred dividends in arrears net of income tax.

In Calculating Basic Earnings Per Share, If the Preferred Shares