Question

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

Answer 1

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.