True or false 1. The number of contingent shares to be included in diluted earnings per share is based on the number of shares that would be issuable as if the end of the period were the end of the contingency period. 2. In computing diluted earnings per share, share options are considered dilutive when their option price is greater than the market price, e 3. The journal entry to record amortization of bond premium includes a debit to the bonds payable account. 4. Share splits and share dividends have the same effect on a company's retained earnings and total shareholders' equity. 5. All dividends, except for liquidating dividends, reduce the total shareholders' equity of a corporation. 6. The preemptive right allows shareholders the right to vote for directors of the company