15 3 Our company has convertible bonds outstanding. When we began calculating the diluted earnings per share, we assumed the bonds were a dilutive security. But we soon discovered that if we included the bonds in the calculation, the earnings per share would be increased not decreased. So, what do we do with the convertible bonds information when calculating basic and diluted earnings per share? We do not include the convertible bonds information in the calculation of basic earnings per share, but we do use it in calculating diluted earnings per share We use the convertible bonds information in the calculation of both basic earnings per share and diluted earnings per care We do not include the convertible bonds information in the calculation of either basic or diluted earnings per share D We use the convertible bonds information in the calculation of basic earnings per share, but not for diluted earnings per share B 7 B 9 0 1 16 Down A B Gain on sale of investments goes on which financial statement? income statement balance sheet statement of changes in shareholders' equity tax return D