Medstar Ambulance Service Information from the Company's Financial Records Is

question 19

Multiple Choice

Medstar Ambulance Service Information from the company's financial records is presented below:
$\begin{array}{ll} \text { Notes payable, December 31,2013 } &\$ 1,000,000 \\ \text { Notes payable, December 31, 2014 } &1,200,000 \\ \text { Loss on Note retirement-2014 } &45,000 \\ \text { Interest expense on bonds- 2014} &75,000\end{array}$
At the end of 2014,the company issued notes at par value for $1,200,000 cash.The proceeds were used to retire the $1,000,000 note issue outstanding at the end of 2013 (before their maturity date) .All interest expense was paid in cash during 2014.
-Refer to Medstar Ambulance Service.How much was paid to retire the $1,000,000 note issue during 2014?

• A)$ 800,000
• B)$1,200,000
• C)$1,045,000
• D)$1,075,000

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