Using $20,000 in cash and a new loan of $80,000 to purchase land for $100,000 will cause equity to a. increase by $100,000 b. increase by $20,000 c. increase by $80,000 d. not change 11. The total depreciation over an assets useful life is equal to a. cost minus salvage value b. cost plus salvage value c. book value d. salvage value 12. The degree to which a restaurant's assets adequately secure its debts is referred to as a. liquidity b. solvency c. efficiency d. profitability