Fathom Consulting Services acquired land three years ago for $25,000. On September 30, Fathom signed an agreement to sell the land for $80,000. In accordance with the sales agreement, the buyer transferred $80,000 to Fathom’s bank account on October 6. Fathom uses the cash basis of accounting.
(a) When would Fathom record the sale of the land?
(b) How would the elements of the accounting equation be affected by the sale?