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

Additional information:
1. Trudeau purchased $80,000 of equipment and $30,000 of land for cash in 2008.
2. Trudeau also sold equipment in 2008.

Instructions
(a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2008.
(b) Indicate where each of the cash inflows or outflows identified in (a) would be classified on the statement of cashflows.

Transcribed Image Text:

2008 2007 Accumulated depreciation-buildings Accumulated depreciation equipment Buildings Depreciation expense Equipment Land Loss on sale of equipment $337,500 144,000 750,000 101,500 300,000 100,000 $300,000 96,000 750,000 85,500 240,000 70,000 1,000