When bonds issued under GAAP contain a beneficial conversion option are converted,the paid-in capital - beneficial conversion feature ________.

Question

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When bonds issued under GAAP contain a beneficial conversion option and are converted, the paid-in capital - beneficial conversion feature is appropriately removed from the balance sheet, as it represents a discount on the bonds that has now been realized through conversion. It is not recorded as a loss or added to any other account.

When Bonds Issued Under GAAP Contain a Beneficial Conversion Option