A company issued rights to its existing shareholders without consideration. The rights allowed the recipients to purchase unissued common stock for an amount in excess of par value. When the rights are issued, which of the following accounts will be increased?
a. Common Stockb. Additional PIC

2. Additional Paid-in capital will be increased because it is noted in the question that the recipients of the rights issue are given the purchase of the common stock 'in excess of par value'. The excess amount will be credited to the additional PIC

A company issued rights to its existing shareholders without consideration. The rights allowed the recipients to purchase unissued common stock for an amount in excess of par value. When the rights are issued, which of the following accounts will be increased? a. Common Stockb. Additional PIC

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A company issued rights to its existing shareholders without consideration. The rights allowed the recipients to purchase unissued common stock for an amount in excess of par value. When the rights are issued, which of the following accounts will be increased?
a. Common Stockb. Additional PIC