Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. During the year, Entity L exchanged its common stock valued at $50,000 for vacant land on which it plans to build car wash. Choose the appropriate category on the statement of cash flows to report this transaction.

a. Cash Flows From Operating Activities-Add to Net Income

b. Cash Flows From Operating Activities-Deduct from Net Income

c. Cash Flows From Investing Activities

d. Cash Flows From Financing Activities

e. Non-cash Investing and Financing Activity