1. Valdez Co. sold land that had cost $48,000 for $60,000 cash. Which of the following statements is true about this transaction?
   1. The $12,000 gain would be subtracted from net income in the operating activities section using the direct method.
   2. $48,000 would appear as a cash inflow from investing activities and $12,000 would be added in the operating activities section using the indirect method.
   3. $60,000 would appear as a cash inflow from investing activities.
   4. The $12,000 gain would be subtracted from net income in the operating activities section prepared using the indirect method and $60,000 would be reported as a cash inflow from investing activities.