Alpha Corporation purchased land for $174,000. Later in the year, the company so

Question

Alpha Corporation purchased land for $174,000. Later in the year, the company sold a different piece of land with a book value of $92,000 for $82,000.

How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.

TransactionsActionAmount

Gain or loss on sale of land Action: $

Cash received from sale of land Action: $

Cash paid for purchase of land Action: $

Explanation / Answer

Effect of transaction :

Transaction activity Amount Gain or loss on sale of land Action Cash flow from operating activities 10000 Cash received from sale of land Action Cash flow from investing activities 82000 Cash paid for purchase of land Action Cash flow from investing activities -174000

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