A Preferred Dividend Claim Should Be Subtracted from Income to Compute

A preferred dividend claim should be subtracted from income to compute basic EPS if the preferred shares are:

A) Noncumulative, nonconvertible, and a dividend has not been declared; however, a dividend was paid this year in fulfillment of the obligation from last year's declaration.
B) Noncumulative, nonconvertible, and the company would like to declare a dividend; however, by law they can't because of a debit balance in the retained earnings account.
C) Noncumulative, nonconvertible, non-participating, and the dividend has been declared.
D) Participating, nonconvertible, noncumulative, and the dividend has not been declared.