Abacus Corporation Purchased Equipment Costing $40,000

Abacus Corporation purchased equipment costing $40,000.It paid $10,000 in cash and signed a note payable for $30,000.This transaction ________.

A) increased assets by $40,000,liabilities by $30,000 and shareholders' equity by $10,000.
B) increased assets by $40,000 and liabilities by $30,000.
C) increased assets and liabilities each by $30,000.
D) increased assets and shareholders' equity each by $40,000.