What is the effect on the accounting equation when \$8,000 of long-term debt is reclassified as current liabilities?

Equity decreases by \$8,000 while total assets decrease by same amount.

Total liabilities unchanged; current up and long-term down.

Total liabilities increase by \$8,000 while equity decreases by same amount.

Assets decrease by \$8,000 while total liabilities decrease by same amount.