Carie Corp. enters into an arrangement with Wilson Enterprises whereby Wilson will assume $100,000 of Caries receivables for a 6% fee. These receivables have a related allowance for uncollectible accounts of $3,500.

If Carie estimates the recourse obligation to be $4,000, which one of the following statements is true regarding the impact to Carie's financial statements?

a) Net income on the income statement will decrease by $6,500.

b) Liabilities on the balance sheet will increase by $6,000

c) Total assets on the balance sheet will decrease by $6,500

d) Equity on the balance sheet will increase by $6,000