The following selected account balances relate to the plant asset accounts of Lazari Inc. at year-end.

2014 2013 Accumulated depreciation—buildings $337,500 $300,000 Accumulated depreciation—equipment 144,000 96,000 Buildings 750,000 750,000 Depreciation expense 99,500 85,500 Equipment 300,000 240,000 Land 120,000 70,000 Loss on disposal of plant assets 6,000 0 Additional information: 1. Lazari purchased $85,000 of equipment and $50,000 of land for cash in 2014. 2. Lazari also sold equipment in 2014. 3. Depreciation expense in 2014 was $37,500 on building and $62,000 on equipment.

Instructions

(a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2014.

(b) Indicate where each of the cash inflows or outflows identified in

(a) would be classified on the statement of cash flows.

AppendixLO1