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Chp $8$B HW i

$1$

$6\mathrm{.}66$ points

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On January $1,$ Year $1,$ Prairie Enterprises purchased a parcel of land for $$13,500$ cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year $3,$ Prairie Enterprises changed its plans and sold the land.

Required

a$.$ Assume that the land was sold for $$14,985$ in Year $3.$

$(1)$ Show the effect of the sale on the accounting equation.

$(2)$ What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

$(3)$ What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?

b$.$ Assume that the land was sold for $$12,690$ in Year $3.$

$(1)$ Show the effect of the sale on the accounting equation.

$(2)$ What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

$(3)$ What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?

Complete this question by entering your answers in the tabs below.

Req A$1$ Req A$2$ and A$3$ Req B$1,$ Req B$2$ and B$3$

Assume that the land was sold for $$12,690$ in Year $3.$

What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?

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