Exercise $6-13$A $($Algo$)$ Effect of gains and losses on the accounting equation and financial statements LO $6-5$

On January $1,$ Year $1,$ Prairie Enterprises purchased a parcel of land for $$12,800$ cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year $3,$ Prairie Enterprises changed its plans and sold the land.

Required

Assume that the land was sold for $$14,208$ in Year $3.$

$(1)$ Show the effect of the sale on the accounting equation.

$(2)$ What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

$(3)$ What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?

Assume that the land was sold for $$12,032$ in Year $3.$

$(1)$ Show the effect of the sale on the accounting equation.

$(2)$ What amount would Prairie report on the Year $3$ income statement related to the sale of the land?

$(3)$ What amount would Prairie report on the Year $3$ statement of cash flows related to the sale of the land?