35. 58. An analysis of the machinery accounts of Noller Company for 2021 is as follows: Machinery, Net of Accumulated Accumulated Machinery Depreciation Depreciation Balance at January 1, 2021 $500,000 $125,000 $375,000 Purchases of new machinery in 2021 for cash 200,000 200,000 Depreciation in 2021 100,000 (100,000) Balance at Dec. 31, 2021 $700,000 $225,000 $475,000 The information concerning Noller's machinery accounts should be shown in Noller's statement of cash flows (indirect method) for the year ended December 31, 2021, as a(n) a. subtraction from net income of $100,000 and a $200,000 decrease in cash flows from financing activities. b. addition to net income of $100,000 and a $200,000 decrease in cash flows from investing activities. C. $100,000 increase in cash flows from financing activities. d. $200,000 decrease in cash flows from investing activities. -15- 36. Which of the following is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial income? a. Subscriptions received in advance. b. Prepaid royalty received in advance. C. An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes. d. Interest received on a municipal obligation