Question $4(2\mathrm{.}5$ points$)$

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How would WDB$\text{'}$s June $1,2022,$ purchase of the $116$ cattle in Pen $231$ affect the accounting equation?

Expenses would increase by $$73,600$ and Assets would decrease by $$73,600.$

There would be no overall effect on the accounting equation because the increase in assets of $$73,600$ is offset by a decrease in assets of $$73,600.$

Assets would increase by $$73,600$ and Liabilities would decrease by $$73,600.$

Assets would increase by $$73,600$ and Liabilities would increase by $$73,600.$

Question $5(2\mathrm{.}5$ points$)$

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How would WDB$\text{'}$s net income be affected by the sale of cattle from Pen $231?($Ignore the effect of taxes.$)$

Net income would increase by $$13,000.$

Net income would not be affected by this transaction.

Net income would decrease by $$115,000.$

Net income would increase by $$128,000.$