Ludwig Company's prepaid rent was $9,500 at December 31, 2015, and $15,500 at December 31, 2016. Ludwig reported rent expense of $21,500 on the 2016 income statement. What amount would be reported in the statement of cash flows as rent paid using the direct method?

$21,500.

None of these answer choices is correct.

$15,500.

$27,500.