3 A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax is purchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%. What would the accounting equation after these transactions show? A Assets $1,800 less Liabilities $200 equals Capital $1,600 B Assets $2,200 less Liabilities $1,000 equals Capital $1,200 C Assets $2,600 less Liabilities $800 equals Capital $1,800 D Assets $2,600 less Liabilities $1,000 equals Capital $1,600 2 marks