XYZ Paid $10,000 in Dividends in January of the Current

question 34

Multiple Choice

XYZ paid $10,000 in dividends in January of the current year to its preferred shareholders. The preferred stock is nonconvertible and noncumulative. The dividend:

• A) Will be added to the denominator of the earnings per share fraction for the current year.
• B) Will be added to the numerator of the earnings per share fraction for the current year.
• C) Will be subtracted from the numerator of the earnings per share fraction for the current year.
• D) May not affect earnings per share depending on the declaration date.

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Items or services offered at a price that is considered fair and affordable.