Land was originally purchased for $20,000. It is sold for $20,000 in cash. How does the sale affect the accounting equation?

Assets increase by $20,000; liabilities increase by $20,000.

Assets increase by $20,000; equity increases by $20,000.

Assets increase by $20,000; assets decrease by $20,000.

Assets increase by $20,000; liabilities decrease by $20,000.