The prepaid rent of a nongovernmental not-for-profit entity was $80,000 at December 31, Year 2, and $60,000 at December 31, Year 1. Rent expense was $60,000 for Year 2 and $40,000 for Year 1. What amount of cash payments for rent is reported in the Year 2 net cash flows from operating activities presented using the direct method?

$20,000

$140,000

$80,000

$60,000