On January $1,$ Year $1,$ Prairie Enterprises purchased a parcel of land for $$14,800$ 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.

Required

a$.$ Assume that the land was sold for $$16,428$ 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 $$13,912$ 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?

Complete this question by entering your answers in the tabs below.

Req A$1$

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

Note: Enter any decreases to account balances with a minus sign.