Land,originally Purchased for $30,000,is Sold for $62,000 in Cash

question 45

Multiple Choice

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

• A)assets increase $62,000; stockholders' equity increases $62,000
• B)assets increase $32,000; stockholders' equity increases $32,000
• C)assets increase $62,000; liabilities decrease $30,000; stockholders' equity increases $32,000
• D)assets increase $30,000; no change for liabilities; stockholders' equity increases $62,000

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