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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.

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.Earnings per share is computed without regard to the amount of the annual preferred dividends.

d.Earnings per share is computed without regard to the amount of dividends declared on common stock.

What is the answer and why?

Thank you :)

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