Westside Shipping issued "preemptive rights" to its existing shareholders without consideration whereby each shareholder is offered the opportunity to buy a percentage of any new shares issued equal to the percentage of shares he/she owns at the time. When Westside issues the rights, which of the following accounts will be increased?
A) Common Stock: Yes; Additional Paid-in Capital: Yes
B) Common Stock: Yes; Additional Paid-in Capital: No
C) Common Stock: No; Additional Paid-in Capital: No
D) Common Stock: No; Additional Paid-in Capital: Yes
Answer: C
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