please help!! Accounting class problem

[jaynice]

Biz owner purchased land for $85k, sold at $137k, paid loan bal of $30k

My choices are: a) Assets up $52k; owners equity up $22k;liabilities down $30k b) assets up 52k; O/E up 30k; liab down 30k c) assets up 22k; O/E up 52k; liab down 30k d)assets down 30k; O/E down 3k; liab down 30k e) assets down $55k; O/E down 55k; liab 30k (buyers FELT land worth 140k)

 

[Rumlan]

I'm no expert and a student myself so don't take my answer automatically but I think it would be C up 22k. Account type in brackets so you can run the numbers yourself.

Dr Land (asset) 85k
Cr Cash (asset) 85k

Dr Cash (asset) 137k
Cr Gain on disposal (rev) 52k
Cr Land (asset) 85k

Dr loan (liability) 30k
Cr Cash (asset) 30k

 

[sumer]

Answer would be C.
Assets up by 22k, liability down by 30k and owners equity up by 52 k.