A company has a debt contract in place which contains a covenant that the company$$s debt to equity ratio must not exceed $120\%,$ meaning that the company$$s total liabilities must not be more than $1\mathrm{.}2$ times shareholders$$ equity.

Total liabilities $=$ current liabilities plus non$-$current liabilities.

Shareholders equity $=$ share capital $+$ reserves $+$ retained earnings.

As balance date approaches, the company$$s management becomes aware that shareholders equity is likely to be $$800,000$ and total liabilities $$1,000,000$ so the debt$/$equity ratio will be $125\%$ and thus above the $120\%$ limit unless some remedial action is taken. From a Positive Accounting Theory perspective, which of the following actions will decrease the debt to equity ratio to $120\%$ or below.

a$.$

Purchase plant & equipment for $$200,000$ and pay cash for it$.$

b$.$

Decrease allowance for doubtful debts by $$100,000$

c$.$

Reclassify $$300,000$ current liabilities as non$-$current liabilities

d$.$

Increase allowance for doubtful debts by $$100,000$

e$.$

Write off trademarks and patents assets by $$200,000$