Purchasing a Building for $120,000 by Paying Cash of $30,000

question 130

Multiple Choice

Purchasing a building for $120,000 by paying cash of $30,000 and obtaining a mortgage for $90,000 would:

• A)increase assets and increase liabilities by $90,000.
• B)increase owner's equity by $90,000.
• C)increase liabilities by $30,000.
• D)decrease assets and decrease liabilities by $30,000.

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