Landmark Restaurants Reported Net Income in 2008 of $45

Multiple Choice

Landmark Restaurants reported net income in 2008 of $45.9 million and depreciation expense of $48.8 million.They also report additions to property and equipment of $162.9 million.Which of the following disclosures would appear on the 2008 statement of cash flows?

A) Depreciation of $48.8 million would be deducted from net income under operating activities and the $162.9 million would be added under investing activities.
B) Depreciation of $48.8 million would be added to net income under operating activities and the $162.9 million would be added under investing activities.
C) Depreciation of $48.8 million would be added to net income under operating activities and the $162.9 million would be deducted under investing activities.
D) Depreciation of $48.8 million would be deducted from net income under operating activities and the $162.9 million would be deducted under investing activities.