In 2014, a storm surge completely destroyed a building belonging to Holland Company. The building cost P100,000 and had accumulated depreciation of P48,000 at the time of the loss.

The entity received a cash settlement from the insurance entity and reported a loss of P21,000. In the 2014 statement of cash flows, what is net change reported in the investing activities? A. 10,000 increase. B. 21,000 decrease. D. 52,000 decrease

Why it is a decrease/Increase. State a comprehensive solution.