Inconsistent data prevents unique solution Steps:

• Calculate book value using depreciation: annual depreciation = 10% × $5,000 =$500; after 2 years, accumulated depreciation = $1,000; book value =$5,000 – $1,000 =$4,000.
• From disposal: loss = book value – sale price, so $700 =$4,000 – sale price implies sale price = $3,300 (contradicts stated sale price of$700).
• Cash inflow from sale = $3,300 (using implied proceeds) or$700 (stated); cash outflow for purchase = $2,400.
• Net cash change ambiguous: $3,300 –$2,400 = +$900 or$700 – $2,400 = –$1,700.

Not enough information.

Final answer: Not enough information.