When Stock Is Purchased by Shareholders at a Price Below

When stock is purchased by shareholders at a price below par value,

A) a liability should be recorded in the financial statements, classified as long-term, and payable upon dissolution of the company to creditors not fully reimbursed.
B) a contingent liability exists that is an obligation to the corporation's creditors.
C) a contingent liability exists that is an obligation to the corporation.
D) the difference between purchase price and par value must be paid by the original shareholder to the corporation before they may sell the stock to another party.