12. Landrum Company sold a piece of equipment costing $400,000 in 2018. The accumulated depreciation on the equipment was $325,000. The sales price was $350,000. This transaction should properly be reported on the statement of cash flows as:

a. Report the gain in the financing section as a source of cash and report the sales proceeds in the operating section.

b. Report the loss as an increase to net income in the operating section

c. Report the sales proceeds in the investing section

d. Report the gain in operating as an increase to net income