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Myers Real Estate Company Exchanged an Acre of Land in Exchange

Question 116

Multiple Choice

Myers Real Estate Company exchanged an acre of land in exchange for five hundred shares of stock in the Midland Corporation.The land is worth $22,000 and the stock is worth $40 per share.How will this transaction be reported on the statement of cash flows?


A) As a source of cash in the investing section, a use of cash in the financing section, and an adjustment to net income in the operating section for the loss
B) As a source of cash in the investing section and a use of cash in the financing section
C) As a non-cash investing and financing transaction
D) As a use of cash in the investing section and a source of cash in the financing section

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