Question
A company acquired some land (independently appraised at $12,800) and paid for it by issuing 1,080 shares of its common stock (par $10 per share;
A company acquired some land (independently appraised at $12,800) and paid for it by issuing 1,080 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?
Report $12,800 as inflow and outflow of cash.
Report $12,800 as an inflow of cash.
Report in a schedule of significant noncash investing and financing activities.
The transaction should not be reported on the statement of cash flows.
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Financial Accounting For Decision Makers
Authors: Peter Atrill, Eddie McLaney
7th Edition
027378563X, 9780273785637
