What is the effect on the statement of financial position when the business buys a car for $25,000, paying a deposit of $5,000 and promising to pay the balance within 60 days?

a)Increase asset vehicle by $5,000; decrease asset bank by $5,000

b)Increase asset vehicle by $20,000; increase liability accounts payable by $20,000

c) Increase asset vehicle by $25,000; decrease asset bank by $5,000; increase liability accounts payable by $20,000

d) None of the above.