Phoenix Co. sold an unused building for 187,000. The building's book value on the date of sale was 182,000. How will this transaction appear on a statement of cash flows prepared using the indirect method.

1. 187,000 increase in investing activities and 5,000 decrease in operating activities
2. 187,000 increase in investing activities and 5,000 increase in operating activities
3. 182,000 increase in investing activities and 5,000 increase in operating activities
4. 182,000 increase in investing activities and 5,000 decrease in operating activities
5. 182,000 increase in investing activities and no effect in operating activities