Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a. $71,000

b. $121,000

c. $50,000

d. $21,000

Question

Case

Business

29 May, 00:19

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a. $71,000

b. $121,000

c. $50,000

d. $21,000

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Answers (1)

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Lance · Answer 1

c. $50,000

Explanation:

The investing activities of cash flow deals with the actual cash received/paid by the entity/corporation from the investing activities. Since in the given question, the actual cash received by the entity from the sale of lands amounts to $50,000, therefore the $50,000 shall be included in the investing activity section of the Cash flows from the sale of land and accordingly the answer shall be c. $50,000

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?a. $71,000b. $121,000c. $50,000d. $21,000

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a. $71,000

b. $121,000

c. $50,000

d. $21,000