Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirectmethod.TransactionGain on sale of landCash received for sale of landCash paid for purchase of land$$AmountIncrease or DecreaseStatement of Cash Flows Section

A cash flow statement is a statement that is prepared to analyze the movement of cash during the…

Answered: ansaction of land Amount Increase or…

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ansaction of land Amount Increase or Decrease Statement of Cash Flows Section

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Lamar Corporation purchased land for $150,000. Later in the year, the company sold land with a book value of $190,000 for $200,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect
method.
Transaction
Gain on sale of land
Cash received for sale of land
Cash paid for purchase of land
$
$
Amount
Increase or Decrease
Statement of Cash Flows Section

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