Value of diagnostic equipment suddenly falls

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Reference no: EM131285575

Assume that the value of diagnostic equipment suddenly falls because of technological obsolescence. How is the balance sheet adjusted to preserve the accounting identity?

1) Short-term liabilities are reduced.

2) Long-term liabilities are reduced.

3) Equity is reduced.

4) Inventories are reduced.

5) Cash is reduced.

Reference no: EM131285575

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