A fire damaged Francisco Corp.s office building. The company received $600,000 as a settlement from their insurance company, which was $180,000 less than the book value of the building. Their income tax rate is 25%. On the statement of cash flows (indirect method), the receipt from the insurance company should

a) be shown as an addition to net income of $420,000.

b) be shown as an inflow from investing activities of $600,000.

c) be shown as an inflow from investing activities of $450,000.

d) be shown as an inflow from investing activities of $420,000.