A flood damaged a building and contents. The receipts from insurance companies totaled $592000, which was $176000 less than the book values. The tax rate is 25%.

On the statement of cash flows (indirect method), the receipts from insurance companies should

be shown as an inflow from investing activities of $416000.

be shown as an inflow from investing activities of $592000.

not be shown.

be shown as an addition to net income of $416000.