On January 1, Year 1, Wilson Company borrowed $70,000 from State Bank. The note stipulates a 3-year term with a 3 percent interest rate. On December 31, Year 1, Wilson recorded an adjusting entry to accrue interest expense. Based solely on these events, indicate whether each of the following statements is true or false. a) The Year 1 income statement is not affected because interest expense has been accrued but not paid. b) The Year 1 statement of cash flows will show a $70,000 cash inflow from investing activities. c) Accruing interest expense in Year 1 increased a liability. d) Accruing interest expense is a claims exchange transaction. e) Both assets and equity decreased in Year 1 as a result of this transaction