Pula inc factores $2,300,000 of accounts receivable with Rata finance on a with recourse basis. The recourse provision has a fair value of $75,000. Rata finance assessed s finance charge of %3 of the total accounts receivable factored and retained on amount equal to %2.5 of the total receivables to cover sales discounts. As a result of this transaction, Pulas:

1. Assets go down by $319,000

2. Liabilities go up by $57,000

3. Equity goes down $144,000

4. Assets go up by $69,000