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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Definitions:

Impossibility

A situation or condition in which something cannot be done or achieved, often due to external factors.

Carrier

An individual or organization in the business of transporting goods or people.

Shipment

The act of transporting goods from one location to another, typically involving a transfer of possession from the seller to a carrier.

Tracking Information

Involves the details provided by shipping or courier services about the status and progress of a shipment's journey from origin to destination.