1. On December 31, 2011, UH3368 reported interest expense of $8,000 and sales of $1,000. The company also reported beginning and ending interest payable at $4,000 and $2,000, respectively. In addition, beginning and ending premium on bonds payable are reported at $3,000 and $2,000, respectively. UH3368 will report cash paid for interests its 2011 statement of cash flows (direct method) in the amount of: a. $5,000. b. $8,000. c. $10,000. d. $11,000.