Question: ABC Company borrows $ 2 0 0 , 0 0 0 from Hometown Bank. It uses the loan dollars to buy an office building. What

ABC Company borrows $200,000 from Hometown Bank. It uses the loan dollars to buy an office building.
What is the effect on ABC Company's accounting equation?
A The Assets decrease and Liabilities increase in the Accounting Equation by $200,000.
B
The Assets and Liabilities of the Accounting Equation both increase by $200,000.
C
The Assets increase and Liabilities decrease in the Accounting Equation by $200,000.
D
The Assets stay the same and Liabilities increase in the Accounting Equation by $200,000.

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