Mercury Inc. reported net income of $100,000 for 20Y2. In addition, the income statement reported $20,000 of depreciation expense and a $10,000 gain on the sale of land. The noncurrent assets from the company’s comparative balance sheet are as follows:

There were no disposals of equipment, and all purchases of equipment were for cash.
Prepare the “Cash flows from investing activities” section of the statement of cash flows.

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Land Equipment Accumulated depreciation-equipment Increase (Decrease) 12/31/20Y2 12/31/20Y1 $ 125,000 $225,000 $(100,000) 500,000 100,000 (120,000) 20,000 400,000 (100,000)