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XYZ borrows $350 million from Bank of USA. It invests $250 million in a new generator and uses the rest, $100 million, to invest in

XYZ borrows $350 million from Bank of USA. It invests $250 million in a new generator and uses the rest, $100 million, to invest in high-yield Certificate of Deposit. What is the impact of this transaction on XYZ's balance sheet?

A.

Liabilities increase by $350 million

B.

Net income increases by $100 million

C.

Assets increase by $250 million

D.

Shareholder equity increases by $100 million

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