Jurgenson Company issued bonds with a $100,000 face value on January 1, 2019.

Jurgenson Company issued bonds with a $100,000 face value on January 1, 2019. The five-year term bonds were issued at 98 and had a 7% stated rate of interest that is payable in cash on December 31st of each year. Jurgenson amortizes the bond discount using the straight-line method. Based on this information:

The amount of cash outflow from operating activities shown on Jurgenson's December 31, 2019, statement of cash flows would be:

a.$7,000.

b.$7,200.

c.$7,400.

d.$7,800.