A Company Acquired Some Land (Independently Appraised at $12,000) and Paid

Multiple Choice

A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common shares (par $10 per share; no market price was quoted) . How should this be reported on the statement of cash flows?

A) Report $12,000 as inflow and outflow of cash.
B) Report on a schedule of significant noncash transactions if it is material.
C) Report $12,000 as an inflow of cash.
D) Should not be reported on the statement of cash flows.