Question: Taylor Co. bills a client $48,000 for services provided and agrees to accept the following three items in full payment:
(1) $7,500 cash,
(2) computer equipment worth $75,000, and
(3) to assume responsibility for a $34,500 note payable related to the computer equipment.
The entry Taylor makes to record this transaction includes which one or more of the following?
a. $34,500 increase in a liability account
b. $7,500 increase in the Cash account
c. $7,500 increase in a revenue account
d. $48,000 increase in an asset account
e. $48,000 increase in a revenue account
f. $34,500 increase in an equity account