On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $13,800 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

Assume that the land was sold for $15,318 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?

Assume that the land was sold for $12,972 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?