In Its 2016 Income Statement,WME Reported a $40,000 Loss on the Sale

In its 2016 income statement,WME reported a $40,000 loss on the sale of equipment.In its reconciliation schedule,WME should:

A) Report a $40,000 cash outflow for the direct method.
B) Show a $40,000 positive adjustment to net income under the indirect method.
C) Show a $40,000 negative adjustment to net income under the indirect method.
D) None of these answer choices is correct.