Antidilutive securities: a b c should be included in the computation of diluted earnings per share but not basic earnings per share include stock options and warrants whose exercise price is less than the average market price of common stock are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share should be ignored in all earnings per share calculations MC6: Carla Vista Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: 840,000 3,250,000 Pretax financial income Estimated litigation expense Installment sales Taxable income -2,640,000 1,450,000 The estimated litigation expense of $3,250,000 will be deductible in 2019 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1,320,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1,320,000 current and $1,320,000 noncurrent. The income tax rate is 40% for all years. The deferred tax asset to be recognized is: a b $1,300,000 current $1,300,000 noncurrent $0 noncurrent $2,356,000 current d