Chapter 2, Problem 2.53Q

Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 will

1. a. decrease total assets and increase total liabilities by $25,000.
2. b. increase both total assets and total liabilities by $115,000.
3. c. decrease both total assets and total liabilities by $25,000.
4. d. increase both total assets and total liabilities by $90,000.