A Company Sells Treasury Stock for an Amount Less Than

A company sells treasury stock for an amount less than its acquisition cost.Where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method?

A) The sale of treasury stock would be presented in the investing activities section as a cash receipt under the both methods.
B) The sale of treasury stock would be presented in the financing activities section as a cash receipt under the both methods.
C) The sale of treasury stock would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash receipt under the direct method.
D) The sale of treasury stock would be presented in the non-cash investing and financing activities section under both methods.