When convertible preferred shares are converted into common shares, the company uses the current fair value to record the journal entry.

Name: When convertible preferred shares are converted into common shares, the company uses the current fair value to record the journal entry.
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When convertible preferred shares are converted into common shares, the company uses the book value method, not the current fair value, to record the journal entry.

When Convertible Preferred Shares Are Converted into Common Shares, the Company