The following account balances are taken from the records of Martin Corp. for the past two years.

The following account balances are taken from the records of Martin Corp. for the past two years.

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Other information available for 2017 is as follows:
a. Net income for the year was $200,000.
b. Depreciation expense on plant and equipment was $50,000.
c. Plant and equipment with an original cost of $150,000 were sold for $64,000. (You will need to determine the book value of the assets sold.)
d. Amortization expense on patents was $8,000.
e. Both new plant and equipment and patents were purchased for cash during the year.
Required
Indicate, with amounts, how all items related to these long-term assets would be reported in the 2017 statement of cash flows, including any adjustments in the Operating Activities section of the statement. Assume that Martin uses the indirect method.

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