If a company purchases equipment costing $$4,500$ on credit, the effect on the accounting equation would be:

Multiple Choice

Equity decreases $$4,500$ and liabilities increase $$4,500.$

Assets increase $$4,500$ and liabilities increase $$4,500.$

One asset increases $$4,500$ and another asset decreases $$4,500.$

Equity increases $$4,500$ and llabilities decrease $$4,500.$