A capital projects fund buys equipment for \($4,000,000\). The equipment has a 4-year estimated life, straight- line, no residual value. The equipment is sold after 3 years for \($200,000\). Which statement is true regarding the effect on the capital project fund's operating statement in the year the equipment is sold?

a. \($800,000\) loss is reported in the nonoperating section.

b. \($200,000\) proceeds are reported as other financing sources.

c. \($800,000\) loss is reported as other financing uses.

d. \($200,000\) proceeds are reported in the revenues section.