In Cassette 14

In Cassette 14.3, Verity Distillery used the product repurchase ploy to

A) Overstate assets and understate liabilities by borrowing money and not recording the liability.
B) Increase owners' equity by recording the sale of inventory without recording any cost of goods sold.
C) Understate assets and understate liabilities by borrowing money through an undisclosed related party transaction and disguising it as a sale.
D) Understate assets and understate liabilities by loaning money to its officers.