A Company purchases a new $10 million dollar building, financed half with cash and half with a bank loan. How would this transaction affect the company’s Balance Sheet?
a. Net Plant and Equipment rises $10 million; cash falls $10 million; bank debt rises $5 million
b. Net Plant and Equipment rises $5 million; cash falls $10 million; bank debt rises $5 million
c. Net Plant and Equipment rises $5 million; cash falls $5 million; bank debt rises $5 million
d. Net Plant and Equipment rises $10 million; cash falls $5 million; bank debt rises $5 million