Kier Company issued $$460,000$ in bonds on January $1,$ Year $1.$ The bonds were issued at face value and carried a $4-$year term to maturity. They had a $6\mathrm{.}50\%$ stated rate of interest that was payable in cash on December $31$st$.$ Based on this information alone, the amount of interest expense shown on the December $31,$ Year $1$ income statement and the cash flow from operating activities shown on the December $31,$ Year $1$ statement of cash flows would be:

Interest Expense Cash Outflow

A$.$ $$29,900$ zero

B$.$ zero $$29,900$

C$.$ $$29,900$ $$29,900$

D$.$ zero zero

Multiple Choice

Choice A

Choice B

Choice C

Choice D