A Company Sold Equipment for $5,000

A company sold equipment for $5,000. The equipment originally cost $16,000 and had accumulated depreciation of $12,000. Which of the following statements is correct regarding the statement of cash flows prepared using the indirect method to report operating activities?

A) $5,000 will be added to net income.
B) Investing activities will reflect proceeds of $4,000 from the sale.
C) $1,000 will be added to net income.
D) $1,000 will be deducted from net income.