Karr, Inc. reported net income of $300,000 during the current year. Changes occurred in several balance sheet accounts as follows: Equipment | $25,000 | increase | Accumulated depreciation | 40,000 | increase | Note payable | 30,000 | increase |
Additional information: During the year, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000. In December, Karr purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000. Depreciation expense for the year was $52,000.
In Karr's statement of cash flows, net cash used in investing activities should be:
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a. | $35,000 | |
b. | $12,000 | |
c. | $2,000 | |
d. | $22,000 |
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