A flood damaged a building and contents. Floods are unusual and infrequent in this area. The receipts from insurance companies totaled $400,000, which was $120,000 less than the book values. The tax rate is 30%. On the statement of cash flows (indirect method), the flood loss should a. be shown as an addition to net income of $84,000. b. not be shown. c. be shown as an addition to net income of $120,000