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When No-Par Stock Is Issued

Question 57

Multiple Choice

When no-par stock is issued:


A) The entire amount received is credited to the Additional Paid-in Capital account.
B) The issue price is credited to the Capital Stock account.
C) There is no legal capital created because there is no par or stated value.
D) The transaction usually involves only an exchange for non-cash assets or services,since the stock has no value on the stock exchanges.

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