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Old 01-14-2008, 01:38 AM
Peaches Peaches is offline
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Join Date: Jan 2008
Posts: 1
c. Its credited as a liability.

a. is wrong because the dividend becomes a liability.
b. is probably wrong depending on how you read the answer. If it read the the stockholder's equity is debited, it would be correct. If "normal credit balance" means the the stocksholders equity section changes, then b would be correct.
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