Question

A company acquired some land (independently appraised at $13,300) and paid for it by issuing 1,130 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

Answer 1

Answer:

reported as a significant noncash investing and financing activities

Explanation:

Since the company purchased some land for $13,300and for the same it is paid 1130 shares for $10 per share

Now as we know that in the cash flow statement only cash transactions are involved but here no cash transaction is arised

So, it would be reported as a significant noncash investing and financing activities