When Callable Preferred Stock Is Recalled, If the Recall Price

question 55

Multiple Choice

When callable preferred stock is recalled, if the recall price exceeds the total of the par value in the preferred stock account and the additional paid-in capital associated with the recalled preferred stock, the difference is

• A)credited to Retained Earnings
• B)credited to Additional Paid-in Capital on Preferred Stock
• C)debited to Retained Earnings
• D)credited to Loss from Recall of Preferred Stock

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