Multiple Choice
Luxton Ltd.signed a $378,000,5-year note payable to buy a new machine.Luxton paid $6,000 cash for transportation of the machine and $900 cash for installation costs.What is the overall effect of this transaction on the accounting equation?
A) Total liabilities increase $384,900.
B) Machinery,an asset,increases $378,000.
C) Total assets increase $378,000.
D) Total liabilities increase $371,100.
Correct Answer:
Verified
Correct Answer:
Verified
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