Additional information: Karr, Inc. reported net income of $300,000 for Year 2. Changes occurred in several Balance Sheet accounts as follows: Equipment $25,000 increase Accumulated depreciation 40,000 increase Note payable 30,000 increase During Year 2, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000. In December Year 2, 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 Year 2 Statement of Cash Flows, net cash used in investing activities should be $2,000. $12,000. $35,000. $22,000