Kier Company issued $720,000 in bonds on January 1, Year 1. 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 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.	$	43,200			zero
B.		zero		$	43,200
C.	$	43,200		$	43,200
D.		zero			zero