1) Proceeds from an issue of debt securities having stockwarrants should NOT be allocated between debt and equity featureswhenA. the allocation would result in a discount on the debtsecurityB. the warrants issued with the debt securities arenondetachableC. exercise of the warrants within the next few fiscal periodsseems remoteD. the market value of the warrants is NOT readily available2) The conversion of preferred stock may be recorded by theA. market value methodB. par value methodC. book value methodD. incremental method3) The conversion of preferred stock into common stock requiresthat any excess of the par value of the common shares issued overthe carrying amount of the preferred being converted should beA. treated as a prior period adjustmentB. treated as a direct reduction of retained earningsC. reflected currently in income as an extraordinary itemD. reflected currently in income but NOT as an extraordinaryitem4) A primary source of stockholders equity isA. contributions by stockholders