Land is purchased with a $20,000 down payment and the execution of an $80,000 promissory note. How does this purchase affect the accounting equation? Is the answer a,b, c, or d.
a) assets increase $80,000; liabilities decrease $20,000
b) assets increase $20,000; liabilities decrease $80,000
c) assets increase $80,000; owner's equity increase $80,000
d) assets increase $80,000; liabilities increase $80,000
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