The purchase of land for $50,000 cash was incorrectly recorded as an increase in land and an…

The purchase of land for $50,000 cash was incorrectly recorded as an increase in land and an increase in notes payable. Which of the following statements is correct?

A. The accounting equation will not balance because cash is overstated by $50,000.

B. The accounting equation will not balance because notes payable are overstated by $50,000.

C. The accounting equation will not balance because assets will exceed liabilities by $50,000.

D. Even though a recording error has been made, the accounting equation will balance.

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