Effect of Transactions on Accounting Equation a. A vacant lot acquired for $448,500 is sold for $865,500 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity? If there is no change, select 'No change' from the dropdown and then enter a 'O' in the amount box. Effect Amount 1. Total Assets Increased $ 417,000 2. Total Liabilities No Change 3. Owner's Equity Increased $ 417,000 b. Assume that the seller owes $125,500 on a loan for the land. After receiving the $865,500 cash in (a), the seller pays the $125,500 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity? If there is no change, select 'No change from the dropdown and then enter a 'O' in the amount box. Effect Amount 1. Total Assets Decreased " 2. Total Liabilities Decreased 3. Owner's Equity No Change C. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Owner's Equity) of the accounting equation? No