(Classification of Transactions) Red Hot Chili Peppers Co. had the following activity in its most recent year of operations.

Instructions Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3)
investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method.

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(a) Purchase of equipment. (b) Redemption of bonds payable. (c) Sale of building. (d) Depreciation.