In determining earnings per share, interest expense, net of applicable income taxes, on convertible debt which is dilutive should be:

A. Added back to net income for basic earnings per share, and ignored for diluted earnings per share
B. Deducted from net income for both basic earnings per share and diluted earnings per share
C. Added back to net income for diluted earnings per share
D. Deducted from net income for basic earnings per share and ignored for diluted earnings per share.

C. Added back to net income for diluted earnings per share

Explanation:

Diluted Earning per Share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Stockholders

The Interest expense on convertible debt which is dilutive should be:

C. Added back to net income for diluted earnings per share

Explanation:

Diluted earnings per share is used to measure the quality of a business's earnings per share if all convertible securities are excercises.

It is usually lower than EPS. Convertible securities include outstanding convertible preference shares, convertible debentures, stock options and warrants.

Dilutive securities are not considered to be common stock but can be converted to common stock.

When determining EPS all interest expense from dilutive securities are usually deducted from EPS income and added to back to net income for diluted EPS

whats the

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know