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Krim Co. has a deficit in retained earnings of $342,000. As part of a quasi-reorganization, assets...

Krim Co. has a deficit in retained earnings of $342,000. As part of a quasi-reorganization, assets will be written down by $36,000. There is a balance in common stock of $100,000 and a balance in paid-in capital--excess of par of $550,000. AFTER the quasi-reorganization, what will be the balance in paid-in capital--excess of par?

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Answer #1
Retained earnings deficit 342000
Add: Assets write down 36000
Total deficit 378000
Balance in paid-in capital--excess of par 550000
Less: Deficit 378000
Balance in paid-in capital--excess of par-after the quasi-reorganization 172000
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