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Land originally purchased for $26,523 is sold for $76,000 in cash. what is the effect of the sale on the accounting equation?
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Land originally purchased for $26,523 is sold for $76,000 in cash. what is the effect of the sale on the accounting equation?

User Andrew Luo
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1 Answer

1 vote

Answer:

The answer is $49,477

Step-by-step explanation:

The land was originally purchased at $26,523 and later sold at a higher price of the $76,000. this means there was a difference of $49,477 and the implication of this on accounting equation is that the asset (Cash) will increase by $49,477 and also owner equity will increases by $49,477.

User Soohoonigan
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