Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include:
a) Assets increase by $75,000 and expenses increase by $75,000
b) Assets increase by $75,000 and expenses decrease by $75,000
c) Liabilities increase by $75,000 and expenses decrease by $75,000
d) Assets decrease by $75,000 and expenses decrease by $75,000
e) Assets increase by $75,000 and liabilities increase by $75,000