Assuming the Indirect Method for Preparing the Statement of Cash

Multiple Choice

Assuming the indirect method for preparing the statement of cash flows is used, indicate whether these items should be added to net income (A) , deducted from net income (D) , or not be reported in the operating section of the statement under the indirect method (NR) .
-Exchange of a note for equipment

A) Added (A)
B) Deducted (D)
C) Not reported (NR)