Palmer Corporation borrows $40,000 cash by signing a note with the bank. Which of the following statements correctly shows the effect of this transaction on the accounting equation? Multiple Choice
A. Assets will increase by $40,000, liabilities will increase by $40,000, and stockholders' equity will remain unchanged
B. Assets will increase by $40,000, liabilities will decrease by $40,000, and stockholders' equity will remain unchanged
C. Assets will increase by $40,000, liabilities will remain unchanged, and stockholders' equity will increase by $40,000
D. Assets will increase by $40,000, liabilities will remain unchanged, and stockholders' equity will decrease by $40,000
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