On January $1,$ Year $1,$ Prairie Enterprises purchased a parcel of land for $$12,000$ cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year $3,$ Prairie Enterprises changed its plans and sold the land.

$0\mathrm{.}9$ Required

points

a$.$ Assume that the land was sold for $$13,320$ in Year $3.$

$(1)$ Show the effect of the sale on the accounting equation.

$(2)$ What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

$(3)$ What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?

b$.$ Assume that the land was sold for $$11,280$ in Year $3.$

$(1)$ Show the effect of the sale on the accounting equation.

$(2)$ What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

$(3)$ What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?

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