Atkins Corporation Has Provided the Following Information for the Year

Atkins Corporation has provided the following information for the year ended December 31, 2014: • The equipment account balance increased $200,000.
• The equipment accumulated depreciation account 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 incorrect with respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows.

A) A $30,000 cash inflow is reported from the equipment sale.
B) Using the indirect method, net income is increased by the $65,000 depreciation expense.
C) Using the indirect method, net income is decreased by the $10,000 gain on the sale of the equipment.
D) A $60,000 cash inflow is reported from the equipment sale.