Final answer:
A payment on Carl Cornfield's tractor will decrease both his assets, likely cash, and liabilities, specifically the outstanding loan for the tractor, on the balance sheet.
Step-by-step explanation:
When Carl Cornfield makes a payment on his tractor, two lines of the balance sheet will be affected: Assets and Liabilities. The asset being the tractor (or cash, if he's paying down with cash), and the liability being the loan he took out to purchase the tractor. Upon making a payment, the amount of the asset (if payment is made in cash) will decrease, while simultaneously, the liability (loan or financial obligation) will also decrease by the same amount of the payment, as he is paying down the debt.
When Carl Cornfield makes a payment on his tractor, it will change two lines of the balance sheet: Assets and Liabilities. The payment will reduce the amount recorded under Liabilities by decreasing the outstanding loan balance, while also reducing the value of the tractor under Assets.