Tony Stark recently received the following information related to Stark Corporations December 31, 2020, balance sheet.

Prepaid insurance $ 2,300; Inventory $ 1,800; Cash $ 2,500; Equipment $ 6,700; Accounts receivable $ 1,500; Trademarks $ 5,600; Debt investments (long-term) $ 3,300; Accumulated depreciationEquipment $1,600

Prepare the asset section of Stark Corporations classified balance sheet and answer the following questions.

If Stark company purchases a piece of new equipment for $5,000 cash, how will this transaction affect the total current asset? *

Current Assets increases by $5,000

Current Assets decreases by $5,000

Current Assets will remain unchanged

Current Assets will increase by $ 2,500

Net Property, Plant & Equipment as of December 31, 2020 *

$ 6,700

$ 1,600

$ 8,300

$ 5,100

Total Assets as of December 31, 2020 *

$ 20,900

$ 25,600

$ 22,100

$ 25,300

Total Long-term Investments as of December 31, 2020 *

$ 2,500

$ 3,300

$ 5,600

$ 8,400

If Stark company purchases a piece of new equipment for $5,000 cash, how will this transaction affect the total assets? *

Total Assets increases by $5,000

Total Assets decreases by $5,000

Total Assets will remain unchanged

Total Assets will increase by $ 2,500

Total Current Asset as of December 31, 2020 *

$ 2,500

$ 5,800

$ 8,100

$ 14,400