According to APB Opinion No

question 9

Multiple Choice

According to APB Opinion No.14, when convertible preferred stock is issued, the conversion provision is

• A)given no consideration
• B)assigned a value based on the difference between the par value and the fair market value of the stock on the date of issuance
• C)assigned a value based on the difference between the stated value of the stock and the market value on the date of issuance
• D)assigned a value based on the difference between the fair market value of the stock without the conversion provision and the fair market value of the stock with the conversion provision

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