Rosewood Company Purchased Land for $140,000 by Making a Cash

Multiple Choice

Rosewood Company purchased land for $140,000 by making a cash payment of $36,000 and promising to pay the remaining amount in a later accounting period.What is the net effect of this transaction on Rosewood's accounting equation?

A) assets increase by $140,000 and liabilities decrease by $36,000
B) assets increase by $140,000 and liabilities decrease by $104,000
C) assets and equity increase by $104,000
D) assets and liabilities increase by $104,000