When a corporation has outstanding both common and preferred stock:

a. Basic and diluted earnings per share are reported only if the preferred stock is cumulative.

b. Earnings per share is reported for each type of stock outstanding.

c. Hamilton's accountant discovers that the entire price paid several years ago to purchase company offices in Texas had been charged to a Land account; conse- quently, no depreciation has ever been taken on these buildings.

d. As a result of labor union contract changes, Hamilton paid increased compensation expense during the year.