On January 1, 2018, Prairie Enterprises purchased a parcel of land for $12,500 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land. Required a. Assume that the land was sold for $13,875 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? b. Assume that the land was sold for $11.750 in 2020. (1) Show the effect of the sale on the accounting equation (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? Req A1 Req A2 and A3 Req 1 Req 2 and 3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) Assets Cash 13,875 PRAIRIE ENTERPRISES 2020 Accounting Equation Stockholders' Equity Land - Common Stock + Retained Earnings (12.500) - 1,375 Req A1 Req AZ and A3 Req B1 Req B2 and 13 (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? 13) Cash flow from investing activities Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 and AB Regal Reg 82 and Reg A1 Req A2 and 3 Reg 1 Req 82 and 33 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? PRAIRIE ENTERPRISES 2020 Accounting Equation Stockholders' Equity Land = Common Stock + Retained Earnings Assets Cash (3) Cash inflow from investing activities