Essay
(a) A vacant lot acquired for $83,000 cash is sold for $127,000 in cash. What is the effect of the sale on thetotal amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity??
(b) Assume that the seller owes $52,000 for the land. After receiving the $127,000 cash in (a), the seller pays the $52,000 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity?
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(a)(1) Total assets increased $44,000
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