A company issued rights to its existing shareholders to purchase for par unissued shares of common stock with a par value of $10 per share. When the market value of the common stock was $12 per share, the rights were exercised. Common stock should be credited at $10 per share and Appropriation for stock retirement credited at $2 per share. No credit made to additional paid-in capital or retained earnings. Additional paid-in capital credited at $2 per share. Retained earnings credited at $2 per share