Jones Company Issued Bonds with a $290,000 Face Value on January

Multiple Choice

Jones Company issued bonds with a $290,000 face value on January 1, Year 1. The five-year term bonds were issued at 98 and had a 7.00% stated rate of interest that is payable in cash on December 31^st of each year. Jones amortizes the bond discount using the straight-line method. Based on this information:The amount of cash outflow from operating activities shown on Jones's December 31, Year 2 statement of cash flows would be:

A) $20,300.
B) $21,460.
C) $19,140.
D) $22,620.