Kirby,IncBorrows $16 Million from Its Bank

Multiple Choice

Kirby,Inc.borrows $16 million from its bank.It then uses this money to buy equipment.How do these two transactions affect the company's accounting equation?

A) Assets and liabilities both increase by $16 million.
B) Assets increase by $8 million and liabilities decrease by $8 million.
C) Assets increase by $16 million,liabilities increase by $8 million,and stockholders' equity increases by $8 million.
D) Assets remain unchanged and liabilities increase by $16 million.