Which of the following is not true regarding diluted earnings per share (DEPS) when the subsidiary has outstanding dilutive securities which may require the issuance of subsidiary company shares only?
A) The calculation of consolidated DEPS becomes a two-stage process where the DEPS of the subsidiary must first be calculated.
B) The controlling interest's share of net income is divided by the number of outstanding parent shares.
C) Both the income of the parent and subsidiary would be the income as shown in their respective income distribution schedules, except for the inclusion of the parent's share of subsidiary income.
D) The DEPS of the subsidiary is a component of the calculation of consolidated DEPS.
Correct Answer:
Verified
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