Use the Following Information for Questions 102 and 103

question 35

Multiple Choice

Use the following information for questions 102 and 103.
A flood damaged a building and contents. Floods are unusual and infrequent in this area. The receipts from insurance companies totaled $500,000, which was $150,000 less than the book values. The tax rate is 30%.
-On the statement of cash flows (indirect method) , the flood loss should

• A) be shown as an addition to net income of $105,000.
• B) be shown as an addition to net income of $150,000.
• C) be shown as an inflow from investing activities of $105,000.
• D) not be shown.