Gordonson, Inc. issues stock to raise capital for a large project. 400,000 shares of $1.00 par value stock are issued. The stock issues for $25 per share. The effect on the accounting equation from issuing this stock is 1) Assets go down. Common stock goes up by $400,000. Additional paid in capital goes up by $9,600,000 2) Assets go up. Common stock goes down by $400,000. Additional paid in capital goes down by $9,600,000. 3) Assets go up. Common stock goes up by $10,000,000. Additional paid in capital goes down by $400,000. 4) Assets go down. Common stock goes down by $400,000. Additional paid in capital goes down by $9,600,000. 5) None of these answers are correct