Land Is Purchased by the Business for $100 000

Multiple Choice

Land is purchased by the business for $100 000. The company pays for land with a $20 000 cash payment and the execution of an $80 000 promissory note payable to the seller. How does this purchase affect the business's accounting equation?

A) Assets increase $80 000; owners' equity increases $80 000.
B) Assets increase $80 000; liabilities increase $80 000.
C) Assets increase $20 000; liabilities decrease $80 000.
D) Assets increase $80 000; liabilities decrease $20 000.