Required information [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Investment securities $ 105,600 Year 1 $113,600 Machinery Land 524,600 140,900 427,600 101,000 Other information drawn from the accounting records: 1. Delsey incurred a $1,210 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,500 (cost of $25,160 minus accumulated depreciation of $20,660) was sold. The income statement showed a gain on the sale of machinery of $4,900. 3. Delsey did not sell land during the year. d. Compute the amount of cash flow associated with the purchase of land. Cost of land purchased
Required information [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Investment securities $ 105,600 Year 1 $113,600 Machinery Land 524,600 140,900 427,600 101,000 Other information drawn from the accounting records: 1. Delsey incurred a $1,210 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,500 (cost of $25,160 minus accumulated depreciation of $20,660) was sold. The income statement showed a gain on the sale of machinery of $4,900. 3. Delsey did not sell land during the year. d. Compute the amount of cash flow associated with the purchase of land. Cost of land purchased
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end
balance sheets:
Account Title
Year 2
Year 1
Investment securities
Machinery
$ 105,600
$113,600
524,600
140,900
427,600
101,000
Land
Other information drawn from the accounting records:
1. Delsey incurred a $1,210 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,500 (cost of $25,160 minus accumulated depreciation of $20,660) was sold.
The income statement showed a gain on the sale of machinery of $4,900.
3. Delsey did not sell land during the year.
d. Compute the amount of cash flow associated with the purchase of land.
Cost of land purchased](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F152d606a-19d5-42cc-b16b-d3ab7c31caac%2Fe4653047-bb56-4281-a253-5ecd486b918a%2Frtn733g_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end
balance sheets:
Account Title
Year 2
Year 1
Investment securities
Machinery
$ 105,600
$113,600
524,600
140,900
427,600
101,000
Land
Other information drawn from the accounting records:
1. Delsey incurred a $1,210 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,500 (cost of $25,160 minus accumulated depreciation of $20,660) was sold.
The income statement showed a gain on the sale of machinery of $4,900.
3. Delsey did not sell land during the year.
d. Compute the amount of cash flow associated with the purchase of land.
Cost of land purchased
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