Victor Company Issued Bonds with a $250,000 Face Value and a 6

question 150

Multiple Choice

Victor Company issued bonds with a $250,000 face value and a 6% stated rate of interest on January 1, Year 1. The bonds carried a 5-year term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year.The amount of cash flow from operating activities on the December 31, Year 3 statement of cash flows would be:

• A) $17,500.
• B) $15,000.
• C) $14,250.
• D) $12,500.