Whitefish Inc

Multiple Choice

Whitefish Inc.bought a building worth $750,000.They paid $150,000 in cash and borrowed the remainder from a bank.What is the effect of this transaction on the accounting equation?

A) Assets increases by $750,000 and liabilities increases by $750,000.
B) Assets increases by $750,000 and liabilities increases by $660,000.
C) Assets increases by $600,000 and liabilities increases by $750,000.
D) Assets increases by $600,000 and liabilities increases by $600,000.
Both assets and liabilities increased by $600,000 ($750,000 - $150,000)