ABC Declared and Paid Cash Dividends to Its Common Shareholders

Multiple Choice

ABC declared and paid cash dividends to its common shareholders in January of the current year. The dividend:

A) Will be added to the numerator of the earnings per share fraction for the current year.
B) Will be added to the denominator of the earnings per share fraction for the current year.
C) Will be subtracted from the numerator of the earnings per share fraction for the current year.
D) Has no effect on the earnings per share for the coming year.