I am stuck on an accounting problem. Land was purchased for $85,000, offer for $150,000, tax assessed at $95,000 and easily recognized as being worth $140,000 by the purchasers. The land sold for $137,000. The seller paid off a $30,000 loan balance on the land. I know his liabilities decreased by $30,000 but did his assets and owner's equity increase or decrease and by how much?
Help would be greatly appreciated!!
Help would be greatly appreciated!!