Saddleback Company paid off $42,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Multiple Choice

Assets, $42,000 increase; equity, $42,000 increase.

Assets, $42,000 decrease; liabilities, $42,000 decrease.

Assets, $42,000 decrease; liabilities, $42,000 increase.

Liabilities, $42,000 decrease; equity, $42,000 increase.

Assets, $42,000 decrease; equity $42,000 decrease.