A capital projects fund buys equipment for $4,000,000. The equipment has a 4-year estimated life, straight-line, no residual value. The equipment is sold after 3 years for $200,000. Which statement is true regarding the effect on the capital project fund's operating statement in the year the equipment is sold?

$800,000 loss is reported in the nonoperating section.

$200,000 proceeds are reported as other financing sources.

$800,000 loss is reported as other financing uses.

$200,000 proceeds are reported in the revenues section.