a company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of…

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?\nreport in a schedule of significant noncash investing and financing activities.\nreport $12,000 as an inflow of cash.\nreport $12,000 as inflow and outflow of cash.\nthe transaction should not be reported on the statement of cash flows.

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?\nreport in a schedule of significant noncash investing and financing activities.\nreport $12,000 as an inflow of cash.\nreport $12,000 as inflow and outflow of cash.\nthe transaction should not be reported on the statement of cash flows.

Answer

Brief Explanations:

The company acquired land by issuing stock, which is a non - cash investing and financing activity. Non - cash transactions like this are not part of the cash inflows and outflows but are significant and need to be disclosed. So, they are reported in a schedule of significant noncash investing and financing activities.

Answer:

Report in a schedule of significant noncash investing and financing activities.