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Purchasing a Building for $150,000 by Paying Cash of $30,000

Question 127

Multiple Choice

Purchasing a building for $150,000 by paying cash of $30,000 and obtaining a mortgage for $120,000 would:


A) increase assets and liabilities by $150,000.
B) increase liabilities by $120,000.
C) increase liabilities by $30,000.
D) decrease assets and liabilities by $120,000.

Correct Answer:

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