On January 1, Steigel Company had a balance of $720,000 in its Land account. During the year, Steigel sold land, which 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 $60,000. This is calculated by subtracting the proceeds from the sale of land ($440,000) from the cost of the land sold ($240,000).

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