work 3ch Check Exercise 8-13A Effect of gains and losses on the accounting equation and financial statements LO 8-5 On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $10,700 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 $11.877 in Year 3. (1) Show the effect of the sale on the Sccounting 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 $10,058 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. Reg A1 Reg A2 and A3 Req B1 Red B2 and B3 search RE e