Kay's Bakery, Inc., began operations in October 2012. The owner contributed cash of $6,000 and a delivery truck with fair value of $8,000 to the company. Which of the following describes how these transactions would affect the company's equity accounts?

Select one:

a.

Increase contributed capital by $14,000

b.

Increase earned capital by $14,000

c.

Increase contributed capital by $6,000 and earned capital by $8,000

d.

Increase earned capital by $6,000 and contributed capital by $8,000

e.

None of the above