In accounting, goodwill May be recorded whenever a company achieves a level of net income that exceeds the industry average. Must be amortized because its useful life is indeterminate. May be recorded when a company purchases another business. Must be expensed m the period it is recorded because benefits from goodwill are difficult to identify. Is never recorded. Which of the following statements is true? When the statement of cash flows is prepared under the indirect method, depreciation expense is added to net income in the operating activities section of the statement of cash flows because it had no cash effect on net income. Depreciation is a non-cash expense that reduces net income but involves no outflow of cash. The only cash effect related to depreciation is the tax savings provided by its deduction to derive taxable income. All of the above are true. None of the above is true. Landry's Restaurants reported net income in 2017 of $45.9 million and depreciation expense of $48.8 million. They also report additions to property and equipment of $162.9 paid in cash. Which of the following disclosures would appear on the 2017 statement of cash flows under the indirect method? Depreciation of $48.8 would be deducted from net income under operating activities, and the 162.9 million would be added under investing activities. Depreciation of $48.8 would be added to net income under operating activities, and the 162.9 million would be added under investing activities. Depreciation of $48.8 would be added to net income under operating activities, and the 162.9 million would be deducted under investing activities. Depreciation of $48.8 would be deducted from net income under operating activities, and the 162.9 million would be deducted under investing activities