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

Question

Quizplus · Accepted Answer

The gain on the sale of land should be reported in the investing activities section of the statement of cash flows, not in the operating activities section. Therefore, it would not be added to net income in the operating activities section.

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