When calculating basic earnings per share, net income is reduced by dividends on nonconvertible cumulative preferred stock:
A) Whether declared or not.
B) Only if declared.
C) Whether dilutive or not.
D) Under no circumstances.
Answer: A) Whether declared or not.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.