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13

Corporations: Organization and


Capital Stock Transactions

Learning Objectives

13-1

Discuss the major characteristics of a corporation.

Explain how to account for the issuance of common


and preferred stock.

Explain how to account for treasury stock.

Prepare a stockholders equity section.

LEARNING
OBJECTIVE

Discuss the major characteristics of a


corporation.

An entity separate and distinct from its owners.


Classified by Purpose

Not-for-Profit

Publicly held

For Profit

Privately held

Salvation Army
American Cancer
Society

13-2

Classified by Ownership

McDonalds
Nike
PepsiCo
Google

Cargill Inc.

Alternative
Alternative Terminology
Terminology
Privately
Privately held
held corporations
corporations
are
are also
also referred
referred to
to as
as
closely
closely held
held corporations.
corporations.
LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-3

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Advantages

Disadvantages

LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.
Corporation acts
Separate Legal Existence
under its own name
Limited Liability of Stockholders
rather than in the
name of its
Transferable Ownership Rights
stockholders.
Ability to Acquire Capital

13-4

Continuous Life

Corporate Management

Government Regulations

Additional Taxes
LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-5

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Limited to their
investment.

LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-6

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Shareholders may
sell their stock.

LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-7

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Corporation can
obtain capital
through the issuance
of stock.

LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-8

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Continuance as a
going concern is not
affected by the
withdrawal, death, or
incapacity of a
stockholder,
employee, or officer.
LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations
from proprietorships and partnerships.

13-9

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Separation of
ownership and
management often
reduces an owners
ability to actively
manage the
company.
LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-10

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes
LO 1

Characteristics of a Corporation
Characteristics that distinguish corporations from
proprietorships and partnerships.

13-11

Separate Legal Existence

Limited Liability of Stockholders

Transferable Ownership Rights

Ability to Acquire Capital

Continuous Life

Corporate Management

Government Regulations

Additional Taxes

Corporations pay
income taxes as a
separate legal entity
and in addition,
stockholders pay
taxes on cash
dividends.
LO 1

Characteristics of a Corporation
Illustration 13-1
Corporation organization chart

Stockholders

Chairman and
Board of
Directors
President and
Chief Executive
Officer

General
Counsel/
Secretary

Vice President
Marketing

Treasurer

13-12

Vice President
Finance/Chief
Financial Officer

Vice President
Operations

Vice President
Human
Resources

Controller

LO 1

Forming a Corporation
Initial Steps:

File application with the Secretary


of State.

State grants charter.

Corporation develops by-laws.

Alternative
Alternative Terminology
Terminology
The
The charter
charter is
is often
often
referred
referred to
to as
as the
the articles
articles
of
of incorporation.
incorporation.

Companies generally incorporate in a state whose laws are


favorable to the corporate form of business (Delaware, New
Jersey).
Corporations engaged in interstate commerce must obtain a
license from each state in which they do business.
13-13

LO 1

Accounting Across the Organization


A Thousand Millionaires!
Traveling to space or embarking on an expedition to excavate lost Mayan ruins
are normally the stuff of adventure novels. But for employees of Facebook, these
and other lavish dreams moved closer to reality when the worlds No. 1 online
social network went public through an initial public offering (IPO) that may have
created at least a thousand millionaires. The IPO was the largest in Internet
history, valuing Facebook at over $104 billion. With all these riches to be had, why
did Mark Zuckerberg, the founder of Facebook, delay taking his company public?
Consider that the main motivation for issuing shares to the public is to raise
money so you can grow your business. However, unlike a manufacturer or even
an online retailer, Facebook doesnt need major physical resources, it doesnt
have inventory, and it doesnt really need much money for marketing. So in the
past, the company hasnt had much need for additional cash beyond what it was
already generating on its own. Finally, as head of a closely held, nonpublic
company, Zuckerberg was subject to far fewer regulations than a public company.
Source: Status Update: Im Rich! Facebook Flotation to Create 1,000 Millionaires Among
Companys Rank and File, Daily Mail Reporter (February 1, 2012).
LO 1
13-14

Stockholder Rights
1. Vote in election of board of
directors and on actions that
require stockholder approval.

2. Share the corporate earnings


through receipt of dividends.

Illustration 13-3
Ownership rights of
stockholders

13-15

LO 1

Stockholder Rights
3. Keep the same percentage ownership when new shares
of stock are issued (preemptive right).

* A number of companies have eliminated the preemptive right.


Illustration 13-3
Ownership rights of
stockholders

13-16

LO 1

Stockholder Rights
4. Share in assets upon liquidation in proportion to their
holdings. This is called a residual claim.

Illustration 13-3
Ownership rights of
stockholders

13-17

LO 1

Stock Issue Considerations


When a corporation decides to issue stock, it must
resolve a number of basic questions:
1. How many shares should it authorize for sale?
2. How should it issue the stock?
3. What value should the corporation assign to the
stock?

13-18

LO 1

Stock Issue Considerations


AUTHORIZED STOCK

13-19

Charter indicates the amount of stock that a corporation


is authorized to sell.

Number of authorized shares is often reported in the


stockholders equity section.

No formal accounting entry.

LO 1

Stock Issue Considerations


Prenumbered

Shares

Illustration 13-4
A Stock certificate

Name of corporation
Stockholders
name

Signature of
corporate official
13-20

LO 1

Stock Issue Considerations


ISSUANCE OF STOCK

Companies issue common stock directly to investors or


indirectly through an investment banking firm.

Factors in setting price for a new issue of stock:


1. Companys anticipated future earnings.
2. Expected dividend rate per share.
3. Current financial position.
4. Current state of the economy.
5. Current state of the securities market.

13-21

LO 1

Stock Issue Considerations


MARKET PRICE OF STOCK

13-22

Stock of publicly held companies is traded on organized


exchanges.

Interaction between buyers and sellers determines the


prices per share.

Prices tend to follow the trend of a companys earnings


and dividends.

Factors beyond a companys control may cause day-today fluctuations in market prices.

LO 1

Investor Insight

13-23

Nike

LO 1

Stock Issue Considerations


PAR AND NO-PAR VALUE STOCK

13-24

Years ago, par value determined the legal capital per


share that a company must retain in the business for the
protection of corporate creditors.

Today many states do not require a par value.

No-par value stock is fairly common today.

In many states, the board of directors assigns a stated


value to no-par shares.

LO 1

Stock Issue Considerations


Question
Which of these statements is false?
a. Ownership of common stock gives the owner a
voting right.
b. The stockholders equity section begins with paid-in
capital.
c. The authorization of capital stock does not result in
a formal accounting entry.
d. Legal capital is intended to protect stockholders.

13-25

LO 1

DO IT!

1a

Corporate Organization

Indicate whether each of the following statements is true or false.


______ 1. Similar to partners in a partnership, stockholders of a
False
corporation have unlimited liability.
______ 2. It is relatively easy for a corporation to obtain capital through
True
the issuance of stock.
______ 3. The separation of ownership and management is an advantage
False
of the corporate form of business.
______ 4. The journal entry to record the authorization of capital stock
False
includes a credit to the appropriate capital stock account.

______ 5. All states require a par value per share for capital stock.
False

13-26

LO 1

Corporate Capital
Common
CommonStock
Stock
Paid-in
Paid-inCapital
Capital

Account
Account

Preferred
PreferredStock
Stock

Paid-in
Paid-inCapital
Capital
in
inExcess
Excessof
ofPar
Par
Account
Account

Account
Account

Two Primary
Sources of
Equity

Retained
RetainedEarnings
Earnings
Account
Account

Paid-in capital is the total amount of cash and other assets paid in
to the corporation by stockholders in exchange for capital stock.

13-27

LO 1

Corporate Capital
Common
CommonStock
Stock
Paid-in
Paid-inCapital
Capital

Account
Account

Preferred
PreferredStock
Stock

Paid-in
Paid-inCapital
Capital
in
inExcess
Excessof
ofPar
Par
Account
Account

Account
Account

Two Primary
Sources of
Equity

Retained
RetainedEarnings
Earnings
Account
Account

Retained earnings is net income that a corporation retains for


future use.

13-28

LO 1

Corporate Capital
If Delta Robotics has a balance of $800,000 in common stock
and $130,000 in retained earnings at the end of its first year,
its stockholders equity section is as follows.
Illustration 13-5
Stockholders equity section

13-29

LO 1

Corporate Capital
Comparison of the owners equity (stockholders equity)
accounts reported on a balance sheet for a proprietorship, a
partnership, and a corporation.

Illustration 13-6
Comparison of owners
equity accounts

13-30

LO 1

DO IT!

1b

Corporate Capital

At the end of its first year of operation, Doral Corporation has


$750,000 of common stock and net income of $122,000. Prepare
(a) the closing entry for net income and (b) the stockholders equity
section at year-end.
Solution
(a)

Income Summary

122,000

Retained Earnings
(b)

Stockholders equity
Common Stock

$750,000

Retained earnings

122,000

Total stockholders equity


13-31

122,000

Advance slide in slide show to reveal solution.

$872,000
LO 1

LEARNING
OBJECTIVE

Explain how to account for the issuance


of common and preferred stock.

Accounting for Common Stock


Primary Objectives:
1) Identify the specific sources of paid-in capital.
2) Maintain the distinction between paid-in capital and
retained earnings.
Other than consideration received, the issuance of common
stock affects only paid-in capital accounts.

13-32

LO 2

Issuing Par Value Common Stock for Cash


Illustration: Assume that Hydro-Slide, Inc. issues 1,000 shares
of $1 par value common stock. Prepare Hydro-Slides journal
entry if (a) 1,000 share are issued for $1 per share, and (b) 1,000
shares are issued for $5 per share.
a.

Cash

1,000

Common Stock (1,000 x $1)


b.

Cash

1,000

5,000

Common Stock (1,000 x $1)

1,000

Paid-in Capital in Excess of Par


Common Stock
4,000

13-33

LO 2

Accounting for Common Stock

Illustration 13-7
Stockholders equitypaid-in
capital in excess of par

13-34

Alternative
Alternative Terminology
Terminology
Paid-in
Paid-in Capital
Capital in
in Excess
Excess of
of Par
Par is
is
also
also called
called Premium
Premium on
on Stock.
Stock.
LO 2

Issuing No-par Common Stock For Cash


Illustration: Assume that instead of $1 par value stock, HydroSlide, Inc. has $5 stated value no-par stock and the company
issues 5,000 shares at $8 per share for cash.
Cash

40,000

Common Stock

25,000

Paid-in Capital in Excess of Stated Value


Common Stock
15,000

13-35

LO 2

Issuing No-par Common Stock For Cash


Illustration: What happens when no-par stock does not have a
stated value?
Cash

40,000

Common Stock

13-36

40,000

LO 2

Issuing Common Stock for Services


or Noncash Assets
Corporations also may issue stock for:

Services (attorneys or consultants).

Noncash assets (land, buildings, and equipment).

Cost is either the fair market value of the consideration given


up, or the fair market value of the consideration received,
whichever is more clearly determinable.

13-37

LO 2

Common Stock for Services


Illustration: Attorneys have helped Jordan Company incorporate.
They have billed the company $5,000 for their services. They agree
to accept 4,000 shares of $1 par value common stock in payment of
their bill. At the time of the exchange, there is no established
market price for the stock. Prepare the journal entry for this
transaction.
Organizational Expense

5,000

Common Stock (4,000 x $1)

4,000

Paid-in Capital in Excess of Par


Common Stock
1,000

13-38

LO 2

Common Stock for Noncash Asset


Illustration: Athletic Research Inc. is an existing publicly held
corporation. Its $5 par value stock is actively traded at $8 per
share. The company issues 10,000 shares of stock to acquire land
recently advertised for sale at $90,000. Prepare the journal entry for
this transaction.
Land

80,000

Common Stock (10,000 x $5)

50,000

Paid-in Capital in Excess of Par


Common Stock
30,000

13-39

LO 2

Accounting for Preferred Stock


Typically, preferred stockholders have a priority as to:
1.

Distributions of earnings (dividends).

2.

Assets in event of liquidation.

Generally do not have voting rights.

Accounting for preferred stock at issuance is similar to that for


common stock.

13-40

LO 2

Accounting for Preferred Stock


Illustration: Stine Corporation issues 10,000 shares of $10
par value preferred stock for $12 cash per share. The journal
entry to record the issuance is:
Cash

120,000

Preferred Stock (10,000 x $10)

100,000

Paid-in Capital in Excess of Par


Preferred Stock
20,000

Preferred stock may have a par value or no-par value.

13-41

LO 2

DO IT!

Issuance of Stock

Cayman Corporation begins operations on March 1 by issuing 100,000


shares of $1 par value common stock for cash at $12 per share. On
March 15, it issues 5,000 shares of common stock to attorneys in
settlement of their bill of $50,000 for organization costs. On March 28,
Cayman Corporation issues 1,500 shares of $10 par value preferred
stock for cash at $30 per share. Journalize the issuance of the
common and preferred shares, assuming the shares are not publicly
traded.
Mar.
1
Cash

1,200,000

Common Stock (100,000 x $1)

100,000

Paid-in Capital in Excess of Par


Common Stock
1,100,000
13-42

LO 2

DO IT!

Issuance of Stock

Cayman Corporation begins operations on March 1 by issuing 100,000


shares of $1 par value common stock for cash at $12 per share. On
March 15, it issues 5,000 shares of common stock to attorneys in
settlement of their bill of $50,000 for organization costs. On March 28,
Cayman Corporation issues 1,500 shares of $10 par value preferred
stock for cash at $30 per share. Journalize the issuance of the
common and preferred shares, assuming the shares are not publicly
traded.
Mar.
15
Organization
Expense 50,000
Common Stock (5,000 x $1)

5,000

Paid-in Capital in Excess of Par


Common Stock
45,000
13-43

LO 2

DO IT!

Issuance of Stock

Cayman Corporation begins operations on March 1 by issuing 100,000


shares of $1 par value common stock for cash at $12 per share. On
March 15, it issues 5,000 shares of common stock to attorneys in
settlement of their bill of $50,000 for organization costs. On March 28,
Cayman Corporation issues 1,500 shares of $10 par value preferred
stock for cash at $30 per share. Journalize the issuance of the
common and preferred shares, assuming the shares are not publicly
traded.
Mar.
28
Cash

45,000

Preferred Stock (1,500 x $10)

15,000

Paid-in Capital in Excess of Par


Preferred Stock
30,000
13-44

LO 2

LEARNING
OBJECTIVE

Explain how to account for treasury


stock.
Common
CommonStock
Stock

Paid-in
Paid-inCapital
Capital

Account
Account

Preferred
PreferredStock
Stock

Paid-in
Paid-inCapital
Capital
in
inExcess
Excessof
ofPar
Par
Account
Account

Account
Account

Two Primary
Sources of
Equity

Retained
RetainedEarnings
Earnings
Account
Account

Less:
Less:
Treasury
TreasuryStock
Stock
Account
Account

13-45

LO 3

Accounting for Treasury Stock


Treasury stock is a corporations own stock that it has
reacquired from shareholders but not retired.
Corporations acquire treasury stock for various reasons:
1. To reissue the shares to officers and employees under
bonus and stock compensation plans.
2. To enhance the stocks market value.
3. To have additional shares available for use in the acquisition
of other companies.
4. To increase earnings per share.

13-46

LO 3

Purchase of Treasury Stock

Companies generally use the cost method.

Debit Treasury Stock for the price paid to


reacquire the shares.

Treasury stock is a contra stockholders equity


account. Reduces stockholders equity.
Helpful
Helpful Hint
Hint
Treasury
Treasury shares
shares do
do not
not have
have
dividend
dividend rights
rights or
or voting
voting rights.
rights.

13-47

LO 3

Purchase of Treasury Stock

Illustration 13-8
Stockholders equity
with no treasury stock

Illustration: On February 1, 2017, Mead acquires 4,000 shares of


its stock at $8 per share.
Treasury Stock (4,000 x $8) 32,000
Cash
13-48

32,000
LO 3

Purchase of Treasury Stock

Illustration 13-9
Stockholders equity
with treasury stock

Both the number of shares issued (100,000) and the number


of shares held as treasury (4,000) are disclosed.

13-49

LO 3

Disposal of Treasury Stock


Sale of Treasury Stock

Above Cost

Below Cost

Both increase total assets and stockholders equity.


Helpful
Helpful Hint
Hint
Treasury
Treasury stock
stock transactions
transactions are
are
classified
classified as
as capital
capital stock
stock
transactions.
transactions. As
As in
in the
the case
case when
when
stock
stock is
is issued,
issued, the
the income
income
statement
statement is
is not
not involved.
involved.

13-50

LO 3

SALE OF TREASURY STOCK


ABOVE COST
Illustration: On July 1, Mead sells for $10 per share 1,000
shares of its treasury stock previously acquired at $8 per share
and makes the following entry.
Cash

10,000

Treasury Stock

8,000

Paid-in Capital from Treasury Stock

2,000

A corporation does not realize a gain or suffer a loss from


stock transactions with its own stockholders.
13-51

LO 3

SALE OF TREASURY STOCK


BELOW COST
Illustration: On Oct. 1, Mead sells an additional 800 shares of
treasury stock at $7 per share and makes the following entry.
Cash

5,600

Paid-in Capital from Treasury Stock


Treasury Stock

Illustration 13-10
Treasury stock accounts
13-52

800

6,400

LO 3

SALE OF TREASURY STOCK


BELOW COST
Illustration: On Dec. 1, assume that Mead, Inc. sells its
remaining 2,200 shares at $7 per share and makes the following
entry.
Cash

15,400

Paid-in Capital from Treasury Stock


Retained Earnings 1,000
Treasury Stock

13-53

1,200

Limited to
balance
on hand

17,600

LO 3

Accounting Across the Organization


Why Did Reebok Buy Its Own Stock?
In a bold (and some would say risky) move, Reebok at one time bought back
nearly a third of its shares. This repurchase of shares dramatically reduced
Reeboks available cash. In fact, the company borrowed significant funds to
accomplish the repurchase. In a press release, management stated that it
was repurchasing the shares because it believed its stock was severely
underpriced. The repurchase of so many shares was meant to signal
managements belief in good future earnings. Skeptics, however, suggested
that Reeboks management was repurchasing shares to make it less likely
that another company would acquire Reebok (in which case Reeboks top
managers would likely lose their jobs). By depleting its cash, Reebok became
a less attractive acquisition target. Acquiring companies like to purchase
companies with large cash balances so they can pay off debt used in the
acquisition.

13-54

LO 3

DO IT! 3

Treasury Stock

Santa Anita Inc. purchases 3,000 shares of its $50 par value
common stock for $180,000 cash on July 1. It will hold the shares in
the treasury until resold. On November 1, the corporation sells
1,000 shares of treasury stock for cash at $70 per share. Journalize
the treasury stock transactions.
Solution
July 1

Treasury Stock

180,000

Cash
Nov. 1

13-55

Cash

180,000
70,000

Treasury Stock

60,000

Paid-in Capital from Treasury Stock

10,000
LO 3

LEARNING
OBJECTIVE

Prepare a stockholders equity section

Companies report paid-in capital and retained earnings in


the stockholders equity section of the balance sheet. Paid-in
capital includes:
1. Capital stock. Preferred stock appears before common stock
because of its preferential rights. Companies report par value,
shares authorized, shares issued, and shares outstanding for
each class of stock.
2. Additional paid-in capital. Excess amounts paid in over par
or stated value and paid-in capital from treasury stock.

13-56

LO 4

13-57

Illustration 13-11
Stockholders equity section

LO 4

DO IT! 4

Stockholders Equity Section

Jennifer Corporation has issued 300,000 shares of $3 par value


common stock. It authorized 600,000 shares. The paid-in capital in
excess of par on the common stock is $380,000. The corporation
has reacquired 15,000 shares at a cost of $50,000 and is currently
holding those shares. Treasury stock was reissued in prior years for
$72,000 more than its cost.
The corporation also has 4,000 shares issued and outstanding of
8%, $100 par value preferred stock. It authorized 10,000 shares.
The paid-in capital in excess of par on the preferred stock is
$25,000. Retained earnings is $610,000.
Prepare the stockholders equity section of the balance sheet.
13-58

LO 4

13-59

LO 4

A Look at IFRS
LEARNING
OBJECTIVE

Compare the accounting for stockholders


equity under GAAP and IFRS.

Key Points
Similarities

13-60

Aside from the terminology used, the accounting transactions for the
issuance of shares and the purchase of treasury stock are similar.

Like GAAP, IFRS does not allow a company to record gains or


losses on purchases of its own shares.

LO 5

A Look at IFRS
Key Points
Differences

13-61

Under IFRS, the term reserves is used to describe all equity


accounts other than those arising from contributed (paid-in) capital.
This would include, for example, reserves related to retained
earnings, asset revaluations, and fair value differences.

Many countries have a different mix of investor groups than in the


United States. For example, in Germany, financial institutions like
banks are not only major creditors of corporations but often are the
largest corporate stockholders as well. In the United States, Asia,
and the United Kingdom, many companies rely on substantial
investment from private investors.
LO 5

A Look at IFRS
Key Points

13-62

There are often terminology differences for equity accounts. The


following summarizes some of the common differences in
terminology.

LO 5

A Look at IFRS
Key Points

13-63

A major difference between IFRS and GAAP relates to the account


Revaluation Surplus. Revaluation surplus arises under IFRS
because companies are permitted to revalue their property, plant,
and equipment to fair value under certain circumstances. This
account is part of general reserves under IFRS and is not considered
contributed capital.

IFRS often uses terms such as retained profits or accumulated


profit or loss to describe retained earnings. The term retained
earnings is also often used.

Equity is given various descriptions under IFRS, such as


shareholders equity, owners equity, capital and reserves, and share
holders funds.
LO 5

A Look at IFRS
Looking to the Future
The IASB and the FASB are currently working on a project related to
financial statement presentation. An important part of this study is to
determine whether certain line items, subtotals, and totals should be clearly
defined and required to be displayed in the financial statements.

13-64

LO 5

A Look at IFRS
IFRS Self-Test Questions
Which of the following is true?
a) In the United States, the primary corporate stockholders are
financial institutions.
b) Share capital means total assets under IFRS.
c) The IASB and FASB are presently studying how financial
statement information should be presented.
d) The amount to treasury stock is very different between U.S.
GAAP and IFRS.

13-65

LO 5

A Look at IFRS
IFRS Self-Test Questions
Under IFRS, the amount of capital received in excess of par
value would be credited to:
a) Retained Earnings.
b) Contributed Capital.
c) Share Premium.
d) Par value is not used under IFRS.

13-66

LO 5

A Look at IFRS
IFRS Self-Test Questions
Which of the following does not represent a pair of GAAP/IFRScomparable terms?
a) Additional paid-in capital/Share premium.
b) Treasury stock/Repurchase reserve.
c) Common stock/Share capital.
d) Preferred stock/Preference shares.

13-67

LO 5

Copyright
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13-68