Abacus Corporation purchased equipment costing $40,000. It paid $10,000 in cash and signed a note payable for $30,000. This transaction ________
A) increased assets by $40,000, liabilities by $30,000 and shareholders' equity by $10,000.
B) increased assets by $40,000 and liabilities by $30,000.
C) increased assets and liabilities each by $30,000.
D) increased assets and shareholders' equity each by $40,000.
Answer: C
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