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    Shareholder's Equity

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    Blue Co. issued preferred stock with detachable common stock warrants at a price which exceeded both the par value and the market value of the preferred stock. At the time the warrants are exercised, Blue's total stockholders' equity is increased by the

    Cash received upon exercise of the warrants | carrying amounts of warrants
    a) Yes | no
    b) Yes | yes
    c) No | no
    d) No | yes.

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    Solution Summary

    This solution helps with a question about shareholder's equity with a detachable common stock warrants at a price that exceeded both the par value and the market value of the preferred stock.

    $2.19