The investment of $100,000 dollars in new medical equipment by the picture perfect physician would constitute as his asset. This would be classified as his non-current assets (equipment is usually classified as non-current assets). If he purchased this on credit, this transaction would affect his liability since this would be a payable on his part. The equity would not change since this is not a transaction that would involve his equity. Assuming that this was a credit transaction, there would be an increase of $100,000 in asset and at the same time, there would be an increase in liability in the amount of $100,000.
