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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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    https://brainmass.com/business/auditing/additional-paid-capital-349563

    Solution Preview

    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 ...

    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.

    $2.19

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