If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows
(prepared by the indirect method).

Question

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in the operating activities section of the statement of cash flows 
(prepared by the indirect method).

Quizplus · Accepted Answer

The gain on the sale of land would be reported in the investing activities section, not the operating activities section, of the statement of cash flows.

If Land Costing $145,000 Was Sold for $205,000, the $60,000