The Following Information Is from the Noncurrent Asset Portion of Gomez

question 29

Essay

The following information is from the noncurrent asset portion of Gomez Company's balance sheet.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$$\begin{array}{lrrrr}&2017&2016\\ \text { Property, plant, and equipment } & \$ 354,000 & \$ 300,000 & \\\text { Accumulated depreciation } & (220,000) & (190,000) \\\text { Long-term investments } & 86,000 & 62,000 &\end{array}$

The following activities occurred during 2017:
Sold equipment with a book value of $6,000 (= $26,000 cost * $20,000 accumulated depreciation)for $16,000 cash.Depreciation expense for the year totaled $50,000.
Purchased property for $80,000 cash.
Purchased long-term investments for $24,000 cash.
(1)Prepare the investing activities section of the statement of cash flows for Gomez Company for the year ended December 31,2017.
(2)Explain the change in each noncurrent asset account.

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Definitions:

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Hardiness

A personality trait characterized by a sense of control over events, commitment to life and work, and the courage to face stressful situations.

African Americans

A racial or ethnic group in the United States with ancestors from Africa, particularly those of Sub-Saharan African descent.

Native Americans

The indigenous peoples of the United States, including both the mainland and the non-contiguous territories.