A Company Acquired Some Land, Which Had Been Independently Appraised

Multiple Choice

A company acquired some land, which had been independently appraised at $12,000, and paid for it by issuing 1,000 shares of its common shares. The shares had a par value of $10 per share and no market price was available. How should this be reported on the statement of cash flows?

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