Question

Land costing $47,978 was sold for $84,179 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? Select the correct answer.a. $132,157 b. $47,978 c. $36,201 d. $84,179

Answer 1

d. $84,179

Step-by-step explanation:

When we are calculating cash flows, we make three sections on the cash flow statement, Operating activities, Investing activities and Financing activities.

Investing activities section involves all the cash proceeds from investing activities like the sale and purchase of capital assets and other business investments. Since this is a cash flow statement, all the proceeds are recorded regardless of net gain or loss.

A total amount of $84,179 is the amount included in investing activities.

Hope that helps.