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Raji 337500

Price: $1.99


The following selected account balances relate to the plant asset accounts of Raji
Inc. at year-end.
  2014 2013
Accumulated depreciation-buildings   337,500  300,000
Accumulated depreciation-equipment   145,000  93,000
Buildings   750,000  750,000
Depreciation expense   101,500  85,500
Equipment   300,000  250,000
Land   100,000  70,000
Loss on disposal of plant assets   7,000  -  





Additional information:
1. Raji purchased $90,000 of equipment and $30,000 of land for cash in 2014.
2. Raji also sold equipment in 2014.
3. Depreciation expense in 2014 was $37,500 on building and $64,000 on equipment.

Instructions
(a) Determine the amounts of any cash inflows or outflows related to the plant asset
accounts in 2014.
(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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