Fandango Co

Multiple Choice

Fandango Co. Ltd. acquired a $45,000 piece of heavy equipment. If they paid for the machine with a bank loan, the change in the balance sheet would be

A) Assets increase by $45,000 and long-term liabilities decrease by $45,000
B) Only long-term liabilities increase by $45,000
C) Assets and long-term liabilities each increase by $45,000
D) Long-term liabilities and shareholders equity each increase by $45,000
E) Only assets increased by $45,000.