Exercise $12-9$A $($Algo$)$ Determining cash flows from investing activities LO $12-3$

On January $1,$ Year $1,$ Bacco Company had a balance of $$76,100$ in its Delivery Equipment account. During Year $1,$ Bacco purchased

delivery equipment that cost $$24,500.$ The balance in the Delivery Equipment account on December $31,$ Year $1,$ was $$76,861.$ The Year

$1$ income statement reported a gain from the sale of equipment of $$3,600.$ On the date of sale, accumulated depreciation on the

equipment sold amounted to $$13,500.$

Required

a$.$ Determine the original cost of the equipment that was sold during Year $1.$

Cost of the equipment

b$.$ Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of

the Year $1$ statement of cash flows.