A vacant lot acquired for $333,000 is sold for $642,500 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?

assets = $309500

liabilities = 0

stockholders' equity = $309500

Explanation:

given data

acquired for = $333,000

sold = $642,500

solution

we get here effect of the sale on the total amount

when assets is decrease then cash and retaining will increase

so here

(1) assets effect is increase than amount will be $642,500

- $333,000 = $309500

(2) liabilities is no change so amount = 0

(3) stockholders' equity is increase than amount will be $642,500

- $333,000 = $309500