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Crimson Company has assets of $100,000, liabilities of $10,000, and owner's equity of $90,000. It buys office equipment on credit for $5,000. What effect would
Crimson Company has assets of $100,000, liabilities of $10,000, and owner's equity of $90,000. It buys office equipment on credit for $5,000. What effect would this transaction have on these amounts? A) Assets increase by $5,000 and owner's equity increases by $5,000 B) Assets increase by $5,000 and owner's equity decreases by $5,000. C) Liabilities increase by $5,000 and owner's equity decreases by $5,000. D) Assets increase by $5,000 and liabilities increase by $5.000
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