22. If a company has a compensation plan based on restricted shares (Restricted stock award): a. This plan represents potential common stock and should therefore be included in the Computation of diluted earnings per share. b. These potential shares must be included in the calculation of earnings per share. basic. c. Although these plans represent potentially dilutive common shares, they are not included in the computation of earnings per share because they are always anti-dilutive. d. These plans are never included in the computation of earnings per share.

23. A company has 1,000 cumulative convertible preferred shares. In 2022 the company had a loss per share (Loss per share) equal to negative $4.00. The amount of preferred dividend is $5,000. For diluted earnings per share purposes, the preferred shares: a. They are diluents b. They are anti-diluents c. If dividends are not declared, they are dilutive d. Cannot answer with the information provided