When computing earnings per share,
a) the dividends for cumulative preferred stock are deducted from net income
whether or not preferred dividends have been declared.
b) an adjustment related to preferred stock dividends is made in the numerator
and denominator of the earnings per share formula.
c) an adjustment for the preferred dividends is made in the denominator of the
earnings per share formula.
d) the dividends for cumulative preferred stock are deducted from net income
only if the preferred dividends have been declared.