A firms common stock has par value of $0.25 per share. The firm issued 200,000 shares of new common stock this past accounting season at a market price of $15 per share. As a result of this issue, the equity portion of the firms balance sheet will have the following change(s):

1. The common stock line will increase by $200,000
2. The capital surplus line will increase by $3,000,000
3. The capital surplus line will increase by $2,950,000
4. The common stock line will increase by $3,000,000

IV only

I and III only

III and IV only

III only