The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Gao Ltd. at the end of 2025 are shown here.

In addition, Gao’s income statement reported a loss on disposal of plant assets of HK$63,000. What amount was reported on the statement of cash flows as “Cash flow from disposal of plant assets”?
Calculate free cash flow.

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Equipment Accumulated Depreciation-Equipment Beg. bal. Acquisitions 800,000 Disposals 410,600 220,000 Disposals 85,000 Beg. bal. 445,000 Depr. exp. 120,000 End. bal. 990,600 End. bal. 480,000