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Cricket Corp. issued, without consideration, rights allowing stockholders to subscribe for additional shares at an amount greater than par value but less than both

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Cricket Corp. issued, without consideration, rights allowing stockholders to subscribe for additional shares at an amount greater than par value but less than both market and book values. When the rights are exercised, how are the following accounts affected? Retained earnings Additional paid-in capital A. Decreased Not affected B. Not affected Not affected C. Decreased Increased D. Not affected Increased 0000

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