Land originally purchased for $28,635 is sold for $78,775 in cash. What is the effect of the sale on the accounting equation
Land originally purchased for $28,635 is sold for $78,775 in cash. What is the effect of the sale on the accounting equation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Land originally purchased for $28,635 is sold for $78,775 in cash. What is the effect of the sale on the accounting equation?
Oa. assets increase by $50,140; owner's equity increases by $50,140
Ob. assets increase by $78,775; liabilities decrease by $28,635; owner's equity increases $50,140
Oc. assets increase by $19,120; no change in liabilities; owner's equity increases by $78,775
Od. assets increase by $78,775; owner's equity increases by $78,775](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9557ab66-16b0-4733-a12e-96bc38d558c3%2F75b6a1f3-ee77-4cc6-9c0a-11e43d575eb3%2Fqazbpuq9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Land originally purchased for $28,635 is sold for $78,775 in cash. What is the effect of the sale on the accounting equation?
Oa. assets increase by $50,140; owner's equity increases by $50,140
Ob. assets increase by $78,775; liabilities decrease by $28,635; owner's equity increases $50,140
Oc. assets increase by $19,120; no change in liabilities; owner's equity increases by $78,775
Od. assets increase by $78,775; owner's equity increases by $78,775
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