An enterprise fund buys equipment for $7,000,000. The equipment has a 4-year estimated life, straight-line, no residual value. The equipment is sold after 3 years for $600,000. Which statement is true regarding the reporting for the sale in the enterprise fund's operating statement?

$1,150,000 loss is reported in the non-operating section.

$600,000 proceeds are reported as other financing sources.

$1,150,000 loss is reported as other financing uses.

$600,000 proceeds are reported in the revenues section.