Answer: See explanation
Explanation:
The effect of these transactions on the total amount of the seller's
(1) assets will be:
= Sales - (Aquisition value + Balance Owed)
= $660,000 - ($500,000 + $300,000)
= $660,000 - $800,000
= -$140,000
Decreased $140,000
2. Liabilities: Decreased by $300,000. This is because the seller paid the $300,000 owed.
3. Stock holder's Equity will be gotten by subtracting the acqusition value from the sales value. This will be:
= $660,000 - $500,000
= $160,000.
Increased by $160,000
