A. When preparing the indirect method statement of cash flows how would a gain on sale of land be handled?

-Present the gain as a financing activity

-Subtract the gain from net income

-Add the gain to net income

-Present the gain as a required disclosure not included in the cash flow statement

b. Tony, Inc issued 25,000 shares of common stock that had a $1 par value. Tony received $37,000 for the issued shares. Choose the journal entry necessary to accurately record this transaction.

-DR Cash 37,000 CR Common stock 12,000 CR Additional paid-in capital 25,000

-DR Cash 37,000 CR Common stock 37,000

-DR Cash 25,000 CR Common stock 25,000

-DR Cash 37,000 CR Common stock 25,000 CR Additional paid-in capital 12,000

c. Tony Company has provided the following information: 600,000 shares of $0.50 par value common stock are authorized 70,000 shares are issued and outstanding The 70,000 shares of issued common stock were issued for $6 per share. What would be the value of the common stock on the balance sheet? (remember paid-in capital amount)

-$35,000

-$300,000

-$420,000

-$70,000