Which of the Following Statements Does Not Correctly Describe an Adjustment

Reliance Corporation has provided the following information for the year ended December 31,2019: • The equipment account balance increased $200,000. • The equipment accumulated depreciation account balance increased $35,000. • Equipment costing $50,000 was sold during the year resulting in a $10,000 gain. • Depreciation expense recorded on the equipment during the year was $65,000. Which of the following statements is correct with respect to determining cash flow from operating activities? A)Using the indirect method,net income is increased by the $30,000 increase in the accumulated depreciation account balance. B)Using the indirect method,net income is decreased by the $30,000 sales price of the equipment. C)Using the indirect method,net income is increased by the $65,000 depreciation expense. D)Using the indirect method,net income is increased by the $10,000 gain on the sale of the equipment.