A flood damaged a building and contents. The receipts from insurance companies totaled $611000, which was $173000 less than the book values. The tax rate is 25%. On the statement of cash flows (indirect method), the receipts from insurance companies should

a. be shown as an inflow from investing activities of $438000.

b. be shown as an addition to net income of $438000.

c. be shown as an inflow from investing activities of $611000

d. not be shown.