Question 38 (1 point) Blackfly Ltd. is a company that specializes in reforestation. The company has cash assets of $80,000 and liabilities of $30,000. Blackfly Ltd. pays off the $30,000 of debt. Blackfly Ltd. borrows another $30,000 and uses the money to buy baby trees. The baby trees are used to recover an area of northern Alberta, for which a forestry company pays Blackfly Ltd. $50,000. The accounting equation at that point in time is a) assets: $100,0001 liabilities: $0; equity: $100,000 Ob) assets: $130,000; liabilities: $30,000; equity: $100,000 c) assets: $100,000; liabilities: $30,000; equity: $70,000 d) assets: $70,000; liabilities: $0; equity: $70,000 Question 40 (1 point) After a year of operation, Blackfly Ltd. has $1,000,000 in assets and $300,000 in liabilities. The owners decide to withdraw $100,000 from the company for their own use. After the withdrawal, the accounting equation is a) assets: $900,000; liabilities: $400,000; equity: $500,000 b) assets: $1,000,000; liabilities: $400,000; equity: $600,000 c) assets: $600,000; liabilities: $0; equity: $600,000 d) assets: $900,000; liabilities: $300,000; equity: $600,000