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The following information was drawn from the year-end balance sheets of Mass Trading Company. Account Title Investment securities Equipment Buildings Land Year 2 $ 34,900
The following information was drawn from the year-end balance sheets of Mass Trading Company. Account Title Investment securities Equipment Buildings Land Year 2 $ 34,900 Year 1 $ 28,800 222,000 212,000 864,500 950,500 83,000 65,500 Additional information regarding transactions occurring during Year 2: 1. Investment securities that had cost $5,370 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $560. 2. Equipment with a cost of $48,500 was purchased. 3. The income statement showed a gain on the sale of equipment of $5,300. On the date of sale, accumulated depreciation on the equipment sold amounted to $7,000. 4. A building that had originally cost $166,500 was demolished. 5. Land that had cost $25,800 was sold for $21,700. a. Determine the amount of cash flow for the purchase of investment securities during Year 2. Cash flow for the purchase of investment securities b. Determine the amount of cash flow from the sale of investment securities during Year 2. Cash flow from the sale of investment securities c. Determine the cost of the equipment that was sold during Year 2. Cost of the equipment sold
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