Determining Cash Flows from Investing Activities Airco owns several aircraft and its balance sheet indicated the following amounts for its aircraft accounts: Equipment, aircraft Jan. 1 $22,250,000 Dec. 31 $32,700,000 Accumulated depreciation 13,125,000 Book value $9,125,000 13,900,000 $18,800,000 Required: 1. Assume that Airco did not sell any aircraft during the year. Determine the amount of depreciation expense and the cash spent for aircraft purchases for the year. Depreciation expense Cash spent for aircraft purchases 2. If Airco sold for cash aircraft that cost $4,286,000 with accumulated depreciation of $3,825,000 producing a gain of $297,000, determine: a. The amount of depreciation expense. b. The cash paid for aircraft purchases c The cash inflow from the disposal of aircraft