Cara,Inc Purchased a Building on January 1,2011 For $£ 500,000$

Multiple Choice

Cara,Inc. purchased a building on January 1,2011 for $£ 500,000$ . The useful life of the building is 10 years. The asset is reported on the December 31, 2011 statement of financial position at 450,000 . What was the impact of the adjusting entry recorded by Cara, Inc.?

A) Decreased Equity $£ 50,000$ .
B) Increased Liabilities $£ 50,000$ .
C) Increased Assets $£ 50,000$ .
D) All of the choices are correct regarding the impact of Cara, Inc.'s adjusting entry at December 31, 2011.