On June 1, Year 2, X Company invested $10,000 in a certificate of deposit. The CD had a 12 percent annual interest rate and a one-year term. For Year 2, X Company would report income on the income statement and cash flow from operating activities on the statement of cash flows, respectively, of

a. $1,200 / $1,200

b. $700 / $700

c. $1,200 / $ 0

d. $700 / $0