The Following Information Was Drawn from the Year-End Balance Sheets

question 62

Multiple Choice

The following information was drawn from the year-end balance sheets of White, Inc.White, Inc., issued $30,000 in bonds during Year 2. The bonds were issued at face value. All bonds were retired at face value. What is the amount of cash outflow for the payment of bond liabilities? $\begin{array}{|l|r|r|}\hline &2014&2013\\\hline \text {Bonds payable }&\$200,000&\$275,000\\\hline \text { Common stock } & 112,500 & 87,500 \\\hline \text { Treasury stock } & 17,500 & 12,500 \\\hline \text { Retained earnings } & 35,000 & 27,500 \\\hline\end{array}$

• A)$75,000
• B)$25,000
• C)$55,000
• D)$105,000