In its 2011 income statement, WME reported $58,000 for insurance expense. WME paid $72,000 in insurance premiums during 2011. In its reconcilation schedule, WME should show a

a. $14,000 negative adjustment to net income under the indirect method for the decrease in prepaid insurance.

b. $14,000 positive adjustment to net income under the indirect method of the increase in prepaid insurance.

c. $14,000 negavite adjustment to net income under the indirect method for the icnrease in prepaid insurance

d. $14,000 positive adjustment to net income under the indirect metod for the increase in prepaid insurance.