On June 4, White Corporation Issued $400 Million of Bonds

On June 4, White Corporation issued $400 million of bonds for $386 million. During the same year, $1 million of the bond discount was amortized. In a statement of cash flows prepared by the indirect method, White Corporation should report:

A) A financing activity of $400 million.
B) An addition to net income of $1 million.
C) An investing activity of $386 million.
D) A deduction from net income of $1 million.It is a financing activity of $386 million and an addition to net income of $1 million.