On December 10, 20X6 Canadian Vessels Placed an Order for a New

On December 10, 20X6 Canadian Vessels placed an order for a new maintenance vessel from a German shipbuilder. The purchase price will be $620,000, and the equipment will be delivered in March 20X7. How would this event be reported in the December 31 20X6 year-end financial statements of Canadian Vessels?

A) An increase in capital assets and an increase in accrued liabilities.
B) An increase in capital assets and an increase in accounts payable.
C) An increase in inventory and an increase in accrued liabilities.
D) The event would be disclosed in the notes to financial statements only.