Mandatorily redeemable preferred stock is reported as a liability.

Name: Mandatorily redeemable preferred stock is reported as a liability.
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Mandatorily redeemable preferred stock is a type of preferred stock that contains a mandatory redemption feature, meaning that the issuer is required to redeem the shares at a predetermined future date or upon the occurrence of a specific event. As a result, it is classified as a liability on the balance sheet, rather than as equity.

Mandatorily Redeemable Preferred Stock Is Reported as a Liability