Your Company Pays Back $2 Million on a Loan It

Multiple Choice

Your company pays back $2 million on a loan it had received earlier from a bank.

A) Assets are unchanged, liabilities and stockholders' equity both increased by $2 million.
B) Assets decrease by $2 million, liabilities decrease by $2 million, stockholders' equity is unchanged.
C) Assets are unchanged, liabilities increase by $2 million, contributed capital decreases by $2 million.
D) Assets decrease by $2 million, liabilities are unchanged, contributed capital decreases by $2 million.