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A Hurricane Destroyed a Company's Building That Originally Cost $1

Question 46

Multiple Choice

A hurricane destroyed a company's building that originally cost $1 million.Which of the following could not be true?


A) Assets remain the same,and liabilities and stockholders' equity both decrease by $1 million.
B) Assets decrease by $1 million,liabilities decrease by $1 million,and stockholders' equity is unchanged.
C) Assets,liabilities,and stockholders' equity all remain the same.
D) Assets decrease by $500,000,and liabilities decrease by $500,000.

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