Cara, Inc. purchased a building on January 1, 2014 for ₤ 800,000. The useful life of the building is 10 years. The asset is reported on the December 31, 2014 statement of financial position at ₤ 720,000. What was the impact of the adjusting entry recorded by Cara, Inc.?
A) Decreased Equity ₤ 80,000.
B) Increased Liabilities ₤ 80,000.
C) Increased Assets ₤ 80,000.
D) All of these answer choices are correct.
Correct Answer:
Verified
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