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Question
A bank sells shares of its common stock with a par value of $100 for $200 in the market. Which two accounts on the bank's balance sheet are going to be affected?
A. Retained earnings and surplus accounts
B. Subordinated notes and debentures and commons stock outstanding accounts
C. Retained earnings and common stock outstanding accounts
D. Common stock outstanding and surplus accounts
E. Only the common stock outstanding account
Answer
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