Assume a firm sells equipment costing $100, with a book value of $60, for $40 cash.

What adjustment to net income under the indirect method for operating cash flow would be required for this transaction?

a.

$20 would be subtracted from net income

b.

$60 would be added to net income.

c.

$20 would be added to net income.

d.

$100 would be subtracted from net income.