Subject: General Accounting The F Company sold the land for $86,000 in cash. The land wasoriginally purchased for $56,000, and at the time of the sale, $17,000was still owed to First National Bank on that purchase. After the sale,The F Company paid off the loan to First National Bank. What is theeffect of the sale and the payoff of the loan on the accountingequation? 1. assets increase by $20,000; liabilities decrease by$15,000; owner's equity increases by $5,000. 2. assets increase by$60,000; liabilities decrease by $15,000; owner's equity increases by$20,000. 3. assets increase by $13,000; liabilities decrease by$17,000; owner's equity increases by $30,000. 4. assets increase by$20,000; liabilities decrease by $15,000; owner's equity increases by$35,000

Concept of AssetsAssets are economic resources owned by a company that have monetary value and…

Answered: The F Company sold the land for $86,000…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 6CDQ: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an...

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Assume the seller owes $113,000 on a loan for the land. After receiving the $770,000 cash in, the seller pays $113,000 that's owed.
A vacant lot is acquired for $83,000 cash. Later the owner borrows $52,000 against the land. Three years later, the lot is then sold for $127,000 in cash. After receiving the $127,000 sales price in cash, the seller pay off the loan of the $52,000 owed. What is the effect of the $52,000 payment of the loan on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? Assets increase $127,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 The payment of the loan has no net effect on any of the categories Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity is unchanged
H1.
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! Required information [The following information applies to the questions displayed below.] Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in year 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is Russell's realized gain on the transaction? Realized gain
! Required information [The following information applies to the questions displayed below.] Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in year 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is Russell's recognized gain in year O, year 1, and year 2? Year Recognized Gain 0 1 2
On October 1, 2024, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9% For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)? (PV of $1. and PVA of $1) Multiple Choice O O $450,000 $369.000 $412,844 $378,756
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