Question

1-4-9

Land costing $117500 was sold for $333700 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

$333700.

$291400.

$216200.

$145700

Answer 1

An amount should be reported as an investing activity from the sale of land is shown and explained below:

An amount recorded as an investing activity from the sale of land is $333,700 because under the cash flow method is recording the actual cash inflow and actual outflow during the given period of time. The sale of land for $333,700 cash, there is an actual inflow of cash $333,700 in the organization.

So an amount should be reported as an investing activity from the sale of land is $333,700

So correct answer is option (1) or $333,700.