On January 1,Steigel Company had a balance of $720,000 in its Land account.During the year,Steigel sold land that had cost $240,000 for $440,000 cash.The balance in the Land account was $980,000 on December 31.What is the net cash outflow from investing activities?
A) $60,000
B) $120,000
C) $200,000
D) $280,000

Question

Quizplus · Accepted Answer

The net cash outflow from investing activities is the difference between the cash received from the sale of land and the cost of the land sold. In this case, the cash received from the sale of land is $440,000 and the cost of the land sold is $240,000. Therefore, the net cash outflow from investing activities is $440,000 - $240,000 = $200,000.

On January 1,Steigel Company Had a Balance of $720,000 in Its