A supplier to Kraft Foods, Inc. purchased plant equipment costing $$25,000$ with cash. The effect on the accounting equation would be:

One asset decreases $$25,000$ and another asset increases $$25,000$

Assets increase $$25,000$ and liabilities decrease $$25,000$

Expenses increase $$25,000$ and assets decrease $$25,000.$

Assets increase $$25,000$ and expenses increase $$25,000.$

Expenses decrease $$25,000$ and assets increase $$25,000.$

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