On January 1, Year 2, Rulz Company spent $850 on a plant asset to Improve its quality. Which of the following correctly shows the effects of the Year 2 expenditure on the financial statements? Income Statement Cash (850) (850) (850) (850) A. B C. D. Balance Sheet Liabilities + Accounts Payable + Not affected Not affected Not affected Not affected Assets Book Value of + Equipment 850 850 (850) Not affected Stockholders' Equity Retained Common Stock + Earnings Not affected Not affected Not affected Not affected Not affected Not affected Not affected (850) Revenue Not affected Not affected Not affected Not affected Expense Not affected Not affected Not affected 850 Net Income Not affected Not affected Not affected (850) Statement of Cash Flows (850) Investing activity (850) Operating activity (850) Investing activity (850) Operating activity Multiple Choice Option A O O Option B O Option C Option D