A Subsidiary Has Dilutive Securities Outstanding That Include Convertible Bonds

question 7

Multiple Choice

A subsidiary has dilutive securities outstanding that include convertible bonds payable.The bonds are convertible into the parent's common stock.When calculating consolidated diluted earnings per share,the convertible bonds will affect

• A)the numerator of consolidated diluted EPS only.
• B)the denominator of consolidated diluted EPS only.
• C)the numerator and denominator of consolidated diluted EPS.
• D)None of the above will be affected.

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