Multiple Choice
Busy Beaver,Inc.signed a $315,000,5-year note payable to buy a new industrial veneer cutter.Busy Beaver paid $5,000 cash for transportation of the machine and $750 cash for installation costs.What is the overall effect of this transaction on the accounting equation?
A) Total liabilities increase $320,750.
B) Total assets increase $309,250.
C) Machinery, an asset, increases $315,000.
D) Total liabilities increase $315,000.
Correct Answer:
Verified
Correct Answer:
Verified
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