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Kier Company issued $760,000 in bonds on January 1, 2016. The bonds were issued at face value and carried a 4-year term to maturity. They
Kier Company issued $760,000 in bonds on January 1, 2016. The bonds were issued at face value and carried a 4-year term to maturity. They had a 6.50% 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. | $49,400 | $49,400 |
B. | zero | zero |
C. | zero | $49,400 |
D. | $49,400 | zero |
Option A
Option B
Option C
Option D
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