A building with a book value of $38,227 is sold for $53,786 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

an increase of $38,227 from investing activities

an increase of $53,786 from investing activities

an increase of $38,227 from investing activities and an addition to net income of $15,559

an increase of $53,786 from investing activities and a deduction from net income of $15,559