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In the Rare Instance When a Par Value Stock Is

Question 65

Multiple Choice

In the rare instance when a par value stock is issued at a cash price below par,the excess of the par value over the amount of cash received should be


A) credited to a liability account.
B) debited to the Retained Earnings account.
C) debited to an account titled Discount on Capital Stock.
D) credited to the Retained Earnings account.

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