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A Company purchases a new $10 million dollar building, financed half with cash and half with a bank loan. How would this transaction affect the

A Company purchases a new $10 million dollar building, financed half with cash and half with a bank loan. How would this transaction affect the companys Balance Sheet?

a.

Net Plant and Equipment rises $10 million; cash falls $10 million; bank debt rises $5 million

b.

Net Plant and Equipment rises $5 million; cash falls $10 million; bank debt rises $5 million

c.

Net Plant and Equipment rises $5 million; cash falls $5 million; bank debt rises $5 million

d.

Net Plant and Equipment rises $10 million; cash falls $5 million; bank debt rises $5 million

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