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On January 2, 2014, LexxMark Co

Question 58

Multiple Choice

On January 2, 2014, LexxMark Co.issues 2,000 convertible preference shares that have a par value of €20 per share.The shares were issued at a price of €400 per share.On December 31, 2016, LexxMark Co.repurchases the convertible preference shares for €820,000.On this date, LexxMark will record


A) A loss of €20,000.
B) A credit to Share Premium-Conversion Equity €40,000.
C) A debit to Retained Earnings €20,000.
D) A credit to Share Capital-Preference €40,000.

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