On September

30,

2011, Ace Electronics issued $100,000 of

10minusyear,

8% bonds at 100. The bonds pay interest semiannually on September 30 and March 31. On its statement of cash flows for the year ended December

31,

2011, Ace will show Cash paid for interest of ________.

A.

$(4,000) in the cash flows from operating activities section of the statement

B.

$0

C.

$(4,000) in the cash flows from financing activities section of the statement

D.

$(2,000) in the cash flows from operating activities section of the statement