Assume that a company’s beginning and ending balances in its Accumulated Depreciation account are $2,000 and $2,900, respectively. Also assume that the company sold a piece of equipment that had an original cost of $400 and accumulated depreciation of $350 for cash proceeds of $75. How much depreciation would the company add to net income in the operating activities section of its statement of cash flows?

a. $550

b. $500

c. $1,300

d. $1,250