Which of the following statements regarding warrants and call options is true?

Options:

Warrants and call options follow the if-converted method.

Warrants and call options that are out of the money are dilutive.

The income effect of warrants and call options is always zero.

In calculating the share effect of the options, the historical cost of the shares is used.

Which of the following statements regarding the methods of accounting for changes is true?

Options:

Accounting for changes in estimates is applied retrospectively.

Correction of prior-period errors is applied retrospectively regardless of practicability.

Changes in accounting policy can be applied retrospectively and prospectively.

Application of accounting changes, estimates, and errors is at management's discretion.