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Additional Paid in Capital

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Additional paid-in capital refers to:

A) a firm's retained earnings.
B) a firm's treasury stock.
C) the difference between the issue price and the par value.
D) funds borrowed from a bank or bondholders.

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Solution Summary

Additional paid in capital refers to a value that is sometimes included in the surplus account in the shareholders' equity section of a company's balance sheet.

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The answer is C) the difference between the issue price and the par value.

Reasoning:

Additional paid in capital refers to a value that is ...

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