Business, 16.10.2019 01:30 matthewarroyo8988
Wood co.'s dividends on noncumulative preferred stock have been declared but not paid. wood has not declared or paid dividends on its cumulative preferred stock in the current or the prior year and has reported a net loss in the current year. for the purpose of computing basic earnings per share, how should the income available to common stockholders be calculated? a. neither the dividends on the noncumulative preferred stock nor the current-year dividends and the dividends in arrears on cumulative preferred stock should be included in the calculation. b. the dividends on the noncumulative preferred stock should be added to the net loss, but the current-year dividends and the dividends in arrears on the cumulative preferred stock should not be included in the calculation. c. the current-year dividends and the dividends in arrears on the cumulative preferred stock should be added to the net loss, but the dividends on the noncumulative preferred stock should not be included in the calculation. d. the dividends on the noncumulative preferred stock and the current-year dividends on the cumulative preferred stock should be added to the net loss.
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