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What is the impact of transaction on sand balance sheet

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Question 1: Sand 5th Avenue borrows $350 million from Trust Bank. It invests $250 million in a new generator and uses the rest, $100 million, to invest in high-yield Certificate of Deposit. What is the impact of this transaction on Sand's balance sheet?

Option A. Assets increase by $250 million

Option B. Shareholder equity increases by $100 million

Option C. Net income increases by $100 million

Option D. Liabilities increase by $350 million

Reference no: EM132584766

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