Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on...

Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a. $71,000

b. $121,000

c. $50,000

d. $21,000

Expert Solution

c 50,000. Since amount received from sale of fixed assets is recorded in cash flow at the sales price. So cash flow from investing activity would be $50,000. Loss would be added in the net income in cash flow from operating activity.

ekkarill92 answered 2 years ago

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