Continuing the same fact pattern as Question 2, ABC Corporation will sell the land for $20,000 on December 31st, 2023, and use the proceeds to issue a cash dividend to its investors. Identify how these transactions will affect ABC Corporations three financial statements. Assume a tax rate of 60% and double declining depreciation.

Question 2: ABC Corporation purchases land for $10,000 on January 1st, 2022. The purchase is financed 50% with debt, 40% in cash, and 10% with equity. Identify how the initial purchase affects ABC Corporations three financial statements. Assume a tax rate of 60%.