Land, Originally Purchased for $20,000, Is Sold for $75,000 in Cash

Multiple Choice

Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?

A) assets increase $75,000; stockholders' equity increases $75,000
B) assets increase $55,000; stockholders' equity increases $55,000
C) assets increase $75,000; liabilities decrease $20,000; stockholders' equity increases $55,000
D) assets increase $20,000; no change for liabilities; stockholders' equity increases $75,000