During 2014, Intel entered into the transactions listed below.
a. On a separate sheet of paper, complete the following chart to show the effect of these transactions on the accounting equation and compute the net effect (dollars in millions).

Transaction                                                                                                         Assets = Liabilities + Shareholders’ Equity
1. Paid $10,105 to purchase property, plant, and equipment.
2. Issued common stock for $1,787.
3. Recorded depreciation of $7,380.
Net effect
b. Which one of the transactions did not appear to affect the accounting equation? Why didn’t it?