Motley Inc. reported net income of $300,000 for 2011. During 2011, Motley sold equipment costing $25,000 with accumulated depreciation of $12,000, for a gain of $5,000. In December 2011, Motley purchased equipment costing $50,000 with $20,000 cash and 12% note payable of $30,000. Depreciation expense for the year was $52,000. Changes occurred in several balance sheet accounts as follows:
Equipment $25,000 increase
Accumulated depreciation 40,000 increase
Note Payable 30,000 increase
In Motley 2011 statement of cash flows, net cash used in investing should be:
a) $2,000
b) $12,000
c) $22,000
d) $35,000