A Company Acquired Some Land (Independently Appraised at $12,000)and Paid

question 63

Multiple Choice

A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common stock (par $10 per share;no market price was quoted) .How should this be reported on the statement of cash flows?

• A)Report $12,000 as inflow and outflow of cash.
• B)Report $12,000 as an inflow of cash.
• C)The transaction should not be reported on the statement of cash flows.
• D)Report in a schedule of significant noncash investing and financing activities.

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