A building with a book value of $39,829 is sold for $59,776 cash. Using the indirect method, choose how this transaction should be shown on the statement of cash flows.

Select the correct answer.

an increase of $39,829 from investing activities and an addition to net income of $19,947

an increase of $39,829 from investing activities

an increase of $59,776 from investing activities

an increase of $59,776 from investing activities and a deduction from net income of $19,947