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 can't locate the info in my text, please help.
My choices are:
a) Assets increased $52k; owners equity increased $22k; liabilities decreased $30k
b) assets increased 52k; O/E increased 30k; liabilities decreased 30k
c) assets increased 22k; O/E increased 52k; liabilities decreased 30k
d) assets decreased 30k; O/E decreased 30k; liabilities decreased 30k
e) assets decreased $55k; O/E decreased 55k; liabilities decreased 30k
Help would be greatly appreciated!!
My choices are:
a) Assets increased $52k; owners equity increased $22k; liabilities decreased $30k
b) assets increased 52k; O/E increased 30k; liabilities decreased 30k
c) assets increased 22k; O/E increased 52k; liabilities decreased 30k
d) assets decreased 30k; O/E decreased 30k; liabilities decreased 30k
e) assets decreased $55k; O/E decreased 55k; liabilities decreased 30k
Help would be greatly appreciated!!