A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity

Since it is given that

Acquiring value of an vacant lot = $115,000

Sale value of the vacant lot in cash = $298,000

Since the sale value is more than the acquiring value which reflects the increment in the asset for $183,000 due to which the profit is also increased for $183,000 i. e retained earnings

Now the effect is shown below:

1. Assets = Increase = $183,000

2. Liabilities = No change = $0

3. Stockholder equity = Increased = $183,000