The year 11 balance sheet of Cool Tools, Inc. reported the following fixed asset balances:

On January 1, year 11, Cool Tools purchased fixed assets for $ 50,000 and sold fixed assets with an original cost of $ 18,000 and a book value of $ 6,000 for $ 10,000. Cool Tools made no other long- term asset purchases or sales during year 11. What is Cool Tools€™ net cash used in investing activities and the amount of the depreciation adjustment to the operating section of Cool Tools€™ statement of cash flows prepared using the indirect method?
Net Cash Used in Investing Activities Depreciation Adjustment in Operating Section
a. $ 32,000 $ 12,000
b. $ 32,000 $ 24,000
c. $ 40,000 $ 12,000
d. $ 40,000 $ 24,000

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Year 11 Year 10 $160,000 $128,000 (53,000) 4,000 S 107000 87000 Fxed assets Accumulated depreciation Fixed assets, net