A company issued rights to its existing shareholders to purchase for par unissued shares of common stock with a par value of $10 per share. When the market value of the common stock was $12 per share, the rights were exercised. Common Stock should be credited at $10 per share and
a. Paid-In Capital from Stock Rights credited at $2 per share.
b. Additional Paid-In Capital credited at $2 per share.
c. Retained Earnings credited at $2 per share.
d. no credit made to Additional Paid-In Capital or Retained Earnings.
D
You might also like to view...
Assume that in your hand you hold an ordinary six-sided die and a dime. You toss both the die and the dime on a table. a.What is the probability that a head appears on the dime and a six on the die?b.What is the probability that a tail appears on the dime and any number more than 3 on the die?c.What is the probability that a number larger than 2 appears on the die?
What will be an ideal response?
Which of the following uses the attention-grabbing technique of asking a motivating question?
A) Did you know that over 65 percent of Americans are considered overweight? B) Would you like to drop 10 pounds in a month without visiting the gym? C) Are you aware that the majority of exercise programs don't generate results? D) Have you ever tried following a dieting plan? E) Have you ever started an exercise program?
Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.
Answer the following statement true (T) or false (F)
Pseudo Drugs Inc. is convicted of trafficking in counterfeit prescription drugs. As a penalty, the company may be ordered to pay restitution to the trademark holders in an amount equal to
A. their lost net profits. B. the retail prices of the genuine drugs. C. Pseudo’s profits from the sale of the counterfeit drugs. D. the retail prices of the counterfeit drugs.