Question: . In the treasury stock method, if the proceeds from the exercise of warrants has been earmarked for debt reduction: A . All proceeds are

. In the treasury stock method, if the proceeds from the exercise of warrants has been earmarked for debt reduction:
A. All proceeds are used to buy common stock at the end of the period.
B. Only the amount left over after debt reduction is used to repurchase shares.
C. All proceeds should be placed in government bonds.
D. No more than 20% of the funds can be used to repurchase shares.

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