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

Answer 1

+$183,000

$0

+$183,000

Step-by-step explanation:

Total assets increased by ($298,000 - $115,000) $183,000.

Total liabilities has no change

Total shareholder equity increased by ($298,000 - $115,000) $183,000.