Response to the following problem:
AlphaBot, Inc. issued 50,000 shares of $100 par value, 8% preferred stock on January 1, 2016. Under the terms of the stock agreement, AlphaBot is obligated to repurchase one-quarter of the shares at par value on January 1 of each of the next four years.
AlphaBot is preparing its 2016 financial statements and is unsure of how to present the preferred stock in its statement of financial position.
REQUIRED:
Based on the facts presented, provide a brief statement of the issue to be researched.
Provide the Codification citation to the authority that resolves the research issue-be specific.
(HINT: You will want to look in Topic 480)
Conclusion-how the issue should be resolved based on your research.