Company Deana invested $35,840,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $27,403,324 at 13.9% interest, and equity of $8,436,676. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true?

Select: 5

• Buying the plant had no net effect on the Cash account because the plant was paid for by the bond plus retained earnings.
• On the Balance sheet, Plant & Equipment increased by $35,840,000.
• Cash went up when the Bond was issued by $27,403,324.
• Depreciation increased by $2,389,333.
• Cash went down by $35,840,000 when the plant was purchased.
• Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $8,436,676, the difference between the investment $35,840,000 and the bond $27,403,324.
• Cash was pulled from retained earnings to cover the $8,436,676 difference between the plant purchase and bond issue.
• On the Balance sheet, Long Term Debt changed by $27,403,324.