A Company Disposes of $1 Million of Its Assets

Multiple Choice

A company disposes of $1 million of its assets.Which of the following could not be true about its effects on the basic accounting equation?

A) Assets remain the same,and liabilities and shareholders' equity both decrease by $1 million.
B) Assets decrease by $1 million,liabilities decrease by $1 million,and shareholders' equity is unchanged.
C) Assets,liabilities,and shareholders' equity all remain the same.
D) Assets decrease by $1 million,and liabilities and shareholders' equity both decrease by $500,000.