long-term lease for each restaurant location and depreciates the cost of building a restaurant over the life of the lease. (Click the icon to view the planning information.) (Click the icon to view the building and equipment information.) (Click the icon to view Form 10-K excerpts related to property and equipment.) impact of depreciation when answering this question.) A. Will decrease total liabilities B. Will increase total liabilities C. Total liabilities will not be impacted by this transaction D. Not enough information given to determine impact on total liabilities Auumse that in 2019, The Cheesecake Factory Incorporated (NASDAQ: CAKE) opened a new rest square feet and seats 240 guests. Rather than selling franchises, Cheesecake Factory owns and ope long-term lease for each restaurant location and depreciates the cost of building a restaurant over the i. (i) More info Assurn impac A. Assume that planning for the new Pittsburgh restaurant started a few years ago when an older store in this location closed. Prior to building, Cheesecake Factory had to have architects draw up building plans to be approved by the city. In addition, Cheesecake Factory had to obtain the City's permission to operate a sidewalk cafe. Its plans called for outdoor dining during good weather; large windows can be closed in times of inclement weather. The last roadblock, the permit for a sidewalk cafe, was granted in March 2019. Construction started soon thereafter and the restaurant officially opened seven months later in late October 2019. More info The Cheesecake Factory's Form 10K for 2019 indicates that its average cost to build and equip a new restaurant is approximately \$900 per interior square foot. Furnishings and equipment would typically include booths, chairs, grills, ovens, refrigerators, plates, glasses, and the like. Leasehold improvements could include walls, flooring, ceilings, windows, doors, lighting, heating and cooling systems, and similar items. Combined, the estimated cost of this new location is $7.965 million. For the purpose of this analysis, assume that 75% of the estimated cost covers leasehold improvements, with the remainder covering furnishings and equipment. The Cheesecake Factory's fiscal year end is the closest Tuesday to December 31 each year. Partial year depreciation would be calculated based on the number of whole months out of twelve months that the asset is in service the first year. For this analysis, estimate the salvage value of Cheesecake Factory's plant and equipment as 10% of the original cost. Done