Question
Problem 12-15A (Algo) Determining cash flows from investing activities LO 12-3 Skip to question [The following information applies to the questions displayed below.] The following
Problem 12-15A (Algo) Determining cash flows from investing activities LO 12-3 Skip to question [The following information applies to the questions displayed below.] The following information was drawn from the year-end balance sheets of Mass Trading Company. Account Title Year 2 Year 1 Investment securities $ 33,800 $ 29,400 Equipment 223,000 203,000 Buildings 859,500 951,500 Land 81,000 49,500 Additional information regarding transactions occurring during Year 2: 1. Investment securities that had cost $5,170 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $460. 2. Equipment with a cost of $58,500 was purchased. 3. The income statement showed a gain on the sale of equipment of $6,100. On the date of sale, accumulated depreciation on the equipment sold amounted to $7,100. 4. A building that had originally cost $175,500 was demolished. 5. Land that had cost $25,400 was sold for $20,700. Problem 12-15A (Algo) Part a Required a. Determine the amount of cash flow for the purchase of investment securities during Year 2.
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