Thompson Company sold a piece of equipment that had an original cost of $22,000 and a carrying value of $10,000 for $13,000 in cash. How would this information be reported in a statement of cash flow prepared using the indirect method?

a.A gain of $9,000 would be subtracted in the operating activities section of the statement of cash flows.

b.A gain of $3,000 would be added in the operating activities section of the statement of cash flows.

c.A $13,000 cash receipt from the sale of the equipment would be reported in the financing activities section of the statement of cash flows

d.A $13,000 cash receipt from the sale of the equipment would be reported in the operating activities section of the statement of cash flows.