Land was originally purchased for $20 000. It is sold for $20 000 in cash. How does the sale affect the accounting equation?
A) Assets increase $20 000; assets decrease $20 000.
B) Assets increase $20 000; liabilities decrease $20 000.
C) Assets increase $20 000; owners' equity increases $20 000.
D) Assets increase $20 000; liabilities increase $20 000.
Correct Answer:
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