Determining Cash Flows from Investing Activities}

Burns Company's 2018 and 2017 statements of financial position presented the following data for equipment:

During 2018, equipment costing \(\$ 35,000\) with accumulated depreciation of \(\$ 31,275\) was sold for cash, producing a \(\$ 4,400\) gain.
\section*{Required:}
1. Calculate the amount of depreciation expense for 2018 .
2. Calculate the amount of cash spent for equipment during 2018.
3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.
\section*{Exercise

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12/31/2018 12/31/2017 Equipment $275,000 $225,000 Accumulated depreciation 128,300 92,700 Book value $146,700 $132,300