A company issued shares to acquire a large tract of undeveloped land for future development. The correct recording of this transaction in the cash flow statement is as a(n):

a. disclosure in a note or supplementary schedule.

b. outflow in investing activities, and an inflow in financing activities.

c. outflow in operating activities, and an inflow in financing activities.

the answer is a.

but I dont understand... issue shares is CFF inflow, and purchase land is CFI outflow....I think the answer is B.

is there anybody can tell me the reason to choose A?

thanks

I also chose B

but after looking at the answer, I think that the meaning of this question may be that the company exchanged their shares for the undeveloped land, so it is a non-cash event~~

anyone please tell me whether my consider is right~~