When computing diluted earnings per share, which of the following will not be considered in the calculation? a. The weighted average common shares. b. The effect of stock splits. c. The number of common shares represented by stock purchase warrants d. Cash dividends paid on common stock. GAAP requires that some lease agreements be accounted for as purchases of assets. The theoretical justification for this treatment is that a lease of this type a. Complies with the concept of form over substance. b. Reflects the relationship of cause and effect. c. Satisfies the concept of historical cost d. Conveys most of the benefits of property ownership. Blue Bus Company had 30,000 shares of common stock outstanding on January lof the current year. On April 1, the company issued 15,000 shares of common stock. The company had outstanding stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $11 while the average price for the year was $12. The company reported net income in the amount of $189,374 for the year. What is the diluted earnings per share a. $4.2. b. $4.59. c. $3.79. d. $4.50