On September $1,$ Year $2,$ Canary Co$.$ sold used equipment for a cash amount equaling its carrying amount for both book and tax purposes. On September $15,$ Year $2,$ Canary replaced the equipment by paying cash and signing a note payable for new equipment. The cash paid for the new equipment exceeded the cash received for the old equipment. How should these equipment transactions be reported in Canary's Year $2$ statement of cash flows?

A$.$ Cash outflow equal to the cash paid less the cash received.

B$.$ Cash outflow equal to the cash paid and the note payable less the cash received.

C$.$ Cash inflow equal to the cash received and a cash outflow equal to the cash paid and the note payable.

D$.$ Cash inflow equal to the cash received and a cash outflow equal to the cash paid.