Question
The following information was drawn from the year-end balance sheets of Mass Trading Company. Account Title Year 2 Year 1 Investment securities $ 34,000 $
The following information was drawn from the year-end balance sheets of Mass Trading Company.
Account Title | Year 2 | Year 1 |
---|---|---|
Investment securities | $ 34,000 | $ 29,700 |
Equipment | 234,000 | 209,000 |
Buildings | 846,500 | 950,500 |
Land | 82,000 | 66,000 |
Additional information regarding transactions occurring during Year 2:
1. Investment securities that had cost $5,480 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $530. 2. Equipment with a cost of $48,000 was purchased. 3. The income statement showed a gain on the sale of equipment of $6,900. On the date of sale, accumulated depreciation on the equipment sold amounted to $6,700. 4. A building that had originally cost $164,000 was demolished. 5. Land that had cost $25,900 was sold for $21,000.
d. Determine the amount of cash flow from the sale of equipment during Year 2.
e. Determine the amount of cash flow for the purchase of buildings during Year 2.
f. Determine the amount of cash flow for the purchase of land during Year 2.
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