Resort Paradise Consulting Corp., a mergers and acquisition consulting company active in the hospitality industry, reported interest expense of $3 million and taxes of $1 million. Interest payable increased by $1 million, and taxes payable decreased by $0.5 million. How much cash did the company pay for interest and taxes?

a) $2 million for interest and $1.5 million for taxes

b) $3 million for interest and $1 million for taxes

c) $4 million for interest and $1.5 million for taxes

d) $1 million for interest and $0.5 million for taxes