The following selected account balances relate to the plant asset accounts of Karas Inc. at year-end.

Additional information:1. Karas purchased $85,000 of equipment and $30,000 of land for cash in 2012.2. Karas also sold equipment in 2012.3. Depreciation expense in 2012 was $37,500 on building and $62,000 on equipment.Instructions(a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2012.(b) Indicate where each of the cash inflows or outflows identified in (a) would be classified on the statement of cash flows.

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2011 2012 $337,500 $300,000 Accumulated depreciation-equipment Buildings Depreciation expense Equipment Land Loss on sale of plant assets 144,000 750,000 750,000 300,000 100,000 240,000 70,000 6,000