A Business Bought a New Delivery Truck Worth $45,000

Multiple Choice

A business bought a new delivery truck worth $45,000.They paid $5,000 down and took out a loan for the balance.How would the transaction be recorded?

A) $45,000 increase in capital assets, $5,000 decrease in cash, $40,000 increase in bank loan.
B) $40,000 increase in capital assets, $40,000 increase in bank loan.
C) $45,000 increase in expenses, $5,000 decrease in cash, $40,000 increase in bank loan.
D) $45,000 increase in capital assets, $5,000 decrease in cash, $40,000 decrease in bank loan.