12. In its 2018 income statement, VZO reported $58,000 for insurance expense. VZO paid $72,000 in insurance premiums during 2018. Its reconciliation schedule, VZO should show a $14,000

A. Negative adjustment to net income under the indirect method for the decrease in prepaid insurance

B. Positive adjustment to net income under the indirect method for the increase in prepaid insurance.

C. Positive adjustment to net income under the indirect method for the decrease in prepaid insurance

D. Negative adjustment to net income under the indirect method for the increase in prepaid insurance.