Land, originally purchased for $30,000, is sold for $62,000 in cash. What is the effect of the sale on the accounting equation?

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The land was originally purchased for $30,000 and sold for $62,000, resulting in a gain of $32,000. The cash received increases assets by $62,000, but since the land (an asset) is removed at its original cost of $30,000, the net increase in assets is $32,000. This gain also increases owner's equity by $32,000.

Land, Originally Purchased for $30,000, Is Sold for $62,000 in Cash