Land costing $65,000 was sold for $125,000 cash.The gain on the sale was reported on the statement of income as an operating expense.On the statement of cash flows, what amount should be reported as an investing activity from the sale of the land?

Question

Quizplus · Accepted Answer

The amount reported as an investing activity on the statement of cash flows for the sale of land is the cash received from the sale, which is $125,000. The gain and how it's reported on the income statement do not affect the cash flow statement's reporting of the sale proceeds.

Land Costing $65,000 Was Sold for $125,000 Cash