Problem: A company sold some of its plant assets during 2007. The original cost of the plant assets was $750,000 and the accumulated depreciation at date of sale was $700,000. The proceeds from the sale of the plant assets were $105,000. The information concerning the sale of the plant assets should be shown on the company's statement of cash flows (indirect method) for the year ended December 31, 2008, as a(n):
a.subtraction from net income of $55,000 and a $55,000 increase in cash flows from financing activities.
b.addition to net income of $55,000 and a $105,000 decrease in cash flows from investing activities.
c.subtraction from net income of $55,000 and a $105,000 increase in cash flows from investing activities.
d.addition of $105,000 to net income.
e.none of the above