Rosewood Corporation purchased land for $110,000 by making a cash payment of $36,000 and promising to pay the remaining amount in a later accounting period. What is the net effect of this transaction on Rosewood's accounting equation?
A. Assets increase by $110,000 and liabilities decrease by $74,000.
B. Assets and liabilities increase by $74,000.
C. Assets increase by $110,000 and liabilities decrease by $36,000.
D. Assets and equity increase by $74,000.