Oriole Company Had a Long-Term Debt of $1,500,000

Multiple Choice

Oriole Company had a long-term debt of $1,500,000. To extinguish this debt the company issued $1,500,000 of fully paid shares to the lender. This transaction would have the following impact on the statement of cash flows:

A) increase cash flow from financing activities by $1,500,000.
B) decrease cash by $1,500,000.
C) increase cash by $1,500,000.
D) nil impact.