Company Baldwin invested $15,600,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $14,103,568 at 12.3% interest, and equity of $1,496,432. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true?

Select : 5

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• On the Balance sheet, Plant & Equipment increased by $15,600,000.

• On the Balance sheet, Long Term Debt changed by $14,103,568.

• Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $1,496,432, the difference between the investment $15,600,000 and the bond $14,103,568.

• Depreciation increased by $1,040,000.

• Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings.

• Cash went up when the Bond was issued by $14,103,568.

• Cash went down by $15,600,000 when the plant was purchased.

• Cash was pulled from retained earnings to cover the $1,496,432 difference between the plant purchase and bond issue.