What is the amount to be reported under cash flows from financing activities?

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:





A. $ (3,000).


B. $(60,000).


C. $(57,000).


D. Zero. This is an operating activity.


E. Zero. This is an investing activity





Thank you.|||The actual amount paid out was $60,000 cash, so the answer is B. $(60,000). However you should note that the loss of $3,000 is to be added back to net income under the operating activities section.