Inc Purchased a Building on January 1,2011 For $£ 500,000$

Inc. purchased a building on January 1,2011 for $£ 500,000$ . The useful life of the building is 10 years. What impact will the appropriate adjusting entry at December 31,2011 have on its statement of financial position at December 31,2011 ?

A) Increased Equity $£ 50,000$ .
B) Increased Liabilities 500,000 .
C) Decreased Assets $£ 50,000$ .
D) Since the adjusting entry has offsetting debits and credits, there is no impact on the statement of financial position.