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The following information was drawn from the year-end balance sheets of Mass Trading Company: Account Title Year 2 Year 1 Investment securities $ 36,000 $
The following information was drawn from the year-end balance sheets of Mass Trading Company:
Account Title | Year 2 | Year 1 | |||||
Investment securities | $ | 36,000 | $ | 29,800 | |||
Equipment | 221,000 | 219,000 | |||||
Buildings | 854,500 | 945,500 | |||||
Land | 94,500 | 59,000 | |||||
Additional information regarding transactions occurring during Year 2:
- Investment securities that had cost $5,350 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $420.
- Equipment with a cost of $48,500 was purchased.
- The income statement showed a gain on the sale of equipment of $6,800. On the date of sale, accumulated depreciation on the equipment sold amounted to $7,200.
- A building that had originally cost $176,500 was demolished.
- Land that had cost $25,000 was sold for $20,200.
Required a. Determine the amount of cash flow for the purchase of investment securities during Year 2.
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