A company sells a building with a book value of $5 million for $5 million and purchases a new $10 million building, financed half with cash and half with a bank loan. How would this transaction affect the company's balance sheet?

Net plant and equipment rises $10 million; cash falls $10 million; bank debt rises $5 million

Net plant and equipment rises $5 million; bank debt rises $5 million.

Net plant and equipment rises $5 million; cash falls $5 million; bank debt rises $5 million.

Net plant and equipment rises $5 million; cash falls $10 million; bank debt rises $5 million.