Questions 1 and 2 relate to Roe Company: Roe Company is preparing a Statement of Cash Flows for the year ended December 31, 2004. It has the following account halances. During 2004 , Roe sold for $26,000 a machine that cost $40,000, and purchased several items of machinery. 1. Depreciation on Machinery for 2004 was a. $18,000 b. $24,000 c. $28,000 d. $32,000 2. Machinery purchases for 2004 amounted to a. $34,000 b. $70,000 c. $96,000 d. $110,000 3. A loss on the sale of machinery in the ordinary course of business should be presented in a Statement of Cash Flows (indirect approach) as a ( n ) a. Deduction from income from continuing operations b. Addition to income from continuing operations c. Inflows and outflows of cash d. Outflows of cash