If a company purchases equipment costing $4,100 on credit, the effect on the accounting equation would be:

Multiple Choice

A) Assets increase $4,100 and liabilities decrease $4,100.

B) Equity decreases $4,100 and liabilities increase $4,100.

C) Liabilities decrease $4,100 and assets increase $4,100.

D) Assets increase $4,100 and liabilities increase $4,100.

E) Equity increases $4,100 and liabilities decrease $4,100.