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The stockholders' equity section shows that additional paid in capital increased by $4,446 as a result of stock-based compensation. In the context of the balance

The stockholders' equity section shows that additional paid in capital increased by $4,446 as a result of "stock-based compensation". In the context of the balance sheet equation, this amount is most likely balanced by:

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A decrease in unearned revenues

An increase in a prepaid asset account

A decrease in retained earnings of the same amount (comp expense)

A decrease in cash

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