Land, Originally Purchased for $30,000, Is Sold for $62,000 in Cash

question 1

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

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