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how to Indicate the effect each separate transaction has on investing cash flows.
Note: Amounts to be deducted should be indicated with a minus sign.
a/ Sold a truck costing $49,500, with $25,800 of accumulated depreciation, for $11,800 cash. The sale results in a $11,900 loss.
b/ Sold a machine costing $14,400, with $9,900 of accumulated depreciation, for $8,800 cash. The sale results in a $4,300 gain.
c/ Purchased stock investments for $25,500 cash. The purchaser believes the stock is worth at least $33,800.
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