XYZ Paid $10,000 in Dividends in January of the Current

Multiple Choice

XYZ paid $10,000 in dividends in January of the current year to its preferred shareholders. The preferred stock is nonconvertible and noncumulative. The dividend:

A) Will be added to the denominator of the earnings per share fraction for the current year.
B) Will be added to the numerator 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) May not affect earnings per share depending on the declaration date.