I'm confused how to solve this question. The explanation said to take depreciation expense and subtract the accumulated depreciation but why?

Atkins Corporation has provided the following information for the year ended December 31, 2014:

The equipment account balance increased $200,000.

The equipment accumulated depreciation account increased $35,000.

Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.

Depreciation expense recorded on the equipment during the year was $65,000.

Which of the following statements isincorrectwith respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows.

A) A $30,000 cash inflow is reported from the equipment sale.

B) Using the indirect method, net income is increased by the $65,000 depreciation expense.

C) Using the indirect method, net income is decreased by the $10,000 gain on the sale of the equipment.

D)A $60,000 cash inflow is reported from the equipment sale.