Deducted from net income in the operating activities section is the correct answer.
Under the Indirect method of cash flow statement, The companies must adjust net income to convert certain items to a cash basis.
The reconciliation starts with net income and converts it to net cash provided/ used by operating activities.
Net Income + Non-cash expenses + Loss on the sale of plant assets - Gain on the sale of plant assets - Increase in current asset account + Decrease in current asset account + Increase in current liability account - Decrease in a current liability account.
In this question, If a gain on the sale of plant assets occurs, The company deducts the gain from net income to determine the net cash provided by operating activities.
Learn more about Net Income here: https://brainly.com/question/15530787
#SPJ4
