Finding its surplus wiped out by a drop in assets, many a corporation has created additional surplus by writing down the stated value of the common stock. Both these items are carried on the liability side of the balance sheet. Most companies that have done this are holding companies or investment trusts. Other companies have used some surplus to write down such assets as plants. By doing this they express plants at their true value and do not have ti deduct such large depreciation charges from earnings in subsequent years.
Last week President Albert...
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