Echo Company has assets of $$606,000,$ liabilities of $$253,000,$ and equity of $$353,000.$ It buys office equipment on credit for $$78,000.$ What would $k$ the effects of this transaction on the accounting equation?

Multiple Choice

Assets increase by $$78,000$ and expenses increase by $$78,000.$

Assets increase by $$78,000$ and expenses decrease by $$78,000.$

Liabilities increase by $$78,000$ and expenses decrease by $$78,000.$

Assets decrease by $$78,000$ and expenses decrease by $$78,000$

Assets increase by $$78,000$ and liabilities increase by $$78,000.$