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Phillips Inc. is considering issuing mandatorily redeemable preferred stock. The controller has asked you to research the accounting for this financial instrument to determine if

Phillips Inc. is considering issuing mandatorily redeemable preferred stock. The controller has asked you to research the accounting for this financial instrument to determine if it will be classified as debt or equity. When distinguishing debt from equity, 1. If the redemption of the stock is required to occur only upon the liquidation of the company, how should the stock be classified on the balance sheet

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