During the current year, Emmett, Inc., sold land for $840,000 cash. The land had been purchased by Emmett several years ago for $410,000. Emmett, Inc., uses the indirect method to prepare its statement of cash flows. In order to reconcile net income to net cash from operating activities, net income:

must be decreased by $410,000. must be decreased by $430,000. must be increased by $430,000. should not be adjusted because the sale of land is classified as an investing activity.