Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.'s accounting equation?
A) Increase assets and liabilities.
B) Increase and decrease assets.
C) Increase assets and stockholders' equity.
D) Increase and decrease stockholders' equity.
Answer: A
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