On January 1, 2008, Gert Enterprises purchased a parcel of land for \($12,000\) cash. At the time of purchase, the company planned to use the land for future expansion. In 2009, Gert Enterprises changed its plans and sold the land.

Required:

a. Assume that the land was sold for \($11,200\) in 2009.
(1) Show the effect of the sale on the accounting equation.
(2) What amount w'ould Gert report on the income statement related to the sale of the land?
(3) What amount would Gert report on the statement of cash flows related to the sale of the land?

b. Assume that the land was sold for \($13,500\) in 2009.
(1) Show the effect of the sale on the accounting equation.
(2) What amount would Gert report on the income statement rel ated to the sale of the land?
(3) What amount would Gert report on the statement of cash flows related to the sale of the land?