Kier Company issued $600,000 in bonds on January 1, 2016. The bonds were issued at face value and carried a 5-year term to maturity. They had a 6.00% stated rate of interest that was payable in cash on December 31st. Based on this information alone, the amount of interest expense shown on the 12/31/2016 income statement and the cash flow from operating activities shown on the 12/31/2016 statement of cash flows would be:

	Interest Expense	Cash Outflow
A.	$36,000	$36,000
B.	zero	zero
C.	zero	$36,000
D.	$36,000	zero

Option A

Option B

Option C

Option D