Question: Scout Company sold some of its equipment during 2016. The original cost of the equipment was $800,000 and the accumulated depreciation at date of sale was $760,000. The proceeds from the sale of the equipment were $50,000. The information concerning the sale of the equipment should be shown on Scout's statement of cash flows (indirect method) for the year ended December 31, 2016, as a(n) Select one: A. subtraction from net income of $10,000 and a $50,000 increase in cash flows from investing activities. B. subtraction from net income of $10,000 and a $40,000 increase in cash flows from financing activities. C. addition to net income of $10,000 and a $50,000 increase in cash flows from investing activities. D. addition to net income of $10,000 and a $40,000 increase in cash flows from investing activities.