Ask Question
30 January, 16:18

A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity

+4
Answers (1)
  1. 30 January, 16:44
    0
    Since it is given that

    Acquiring value of an vacant lot = $115,000

    Sale value of the vacant lot in cash = $298,000

    Since the sale value is more than the acquiring value which reflects the increment in the asset for $183,000 due to which the profit is also increased for $183,000 i. e retained earnings

    Now the effect is shown below:

    1. Assets = Increase = $183,000

    2. Liabilities = No change = $0

    3. Stockholder equity = Increased = $183,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller's (1) ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers