Ludwig Company's prepaid rent was $7,000 at December 31, 2015, and $13,000 at December 31, 2016. Ludwig reported rent expense of $20,000 on the 2016 income statement. What amount would be reported in the statement of cash flows as rent paid using the direct method?

$14,000.

$20,000.

$26,000.

None of these answer choices is correct.