Question

f a parcelland that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. At the time of the sale, assume that the seller still owed $30,000 to TrustOne Bank on the land that was purchased for $85,000. Immediately after the sale, the seller paid ioan to TrustOne Bank. What is the effect of the sale and the payoff of the loan on the accounting equation? 选择一项 A. Assets increase $52,000; owner's equity increases $22,000; liabilities decrease 30,000 B. Assets increase $52,000; owner's equity increases $30,000; liabilities decrease $30,000X C. Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000 D. Assets decrease $30,000; owner's equity decreases $30,000; liabilities decrease $30,000 E. Assets decrease $55,000; owner's equity decreases $s5,000; liabilities decrease $30,000

Answer 1

03 5 35O00 and sold fos 13 1000 what is tne effect of the sale and the rayofe of the loan on the accounting Equation Anst CC) assei increases 5 22000 Owness equity increases s552000 Iiability decreases I5 30000 ExPlanation )Thee aue 00 nsacHon ) furchase) sale Let's look at the effect of each indviaually and hen combine effect toill give us final ansuwe Effect of sale AssetLiabiliy t owner's equity CU : 52000 -- + 52000 cncrease) c ncrease -At-sellers-book-Asset Decrease_eLE 3S000) At Puachasers book asset zntreae131000 Now, oUI of this s 52000 30000 6as raid to TOuS ne bank which il decreqse the psset an E30000 d 'abiity by AssetLiabily Oones's equity s2006 os 22000 3000)S2 000 Ans: Cc)