Help answer multiple-choice questions 1&2 with explanation please

On January 1, the balance in the Equipment account was $20,252; on December 31, the balance was $15,653. The Income Statement reports Depreciation Expense of $2,054. During the year, $5,682 of equipment was sold. What was the cost of the equipment purchased during the year? A: 1430.8207|OB: 1674.06020 C: 1958.6504| OD: 2291.6210 OE: 2681.1966| OF: 3137 In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in Inventories and an increase in Accounts Payable. As a result, on the January balance sheet, Accounts Payable was understated. Total liabilities were understated. Retained Earnings was overstated. Inventories were overstated. Total assets were understated. O Cash was understated