Jones Company Issued Bonds with a $200,000 Face Value on January

Multiple Choice

Jones Company issued bonds with a $200,000 face value on January 1, Year 1. The five-year term bonds were issued at 97 and had a 7½% 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) $15,000.
B) $16,200.
C) $13,800.
D) $17,400.