Answer:
C. increase in assets and an increase in equity
Explanation:
When analyzing problems like this, just use the accounting equation as a guide:
Assets = Liabilities + Equity
That means this equation should always "equate" or be equal on both sides.
The only choice that respects the accounting equation is letter C.
↑Assets = Liabilities + ↑Equity
See, both sides had increased and the balance is maintained
