If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, cash paid for bond interest is:

a.$790,000.

b.$784,000.

c.$806,000.

d.$910,000.

cash paid for bond interest that is $790,000

so correct option is a. $790,000

Explanation:

given data

interest expense = $800,000

interest payable increased = $8,000

bond discount decreased = $2,000

to find out

cash paid for bond interest

solution

we get here cash paid for bond interest that is

cash paid for bond interest = Bond Interest Expense - increase in Bond Interest - decrease in Bond Discount ... 1

and here increase in Bond Interest Payable $8,000 of the $800,000 has not been paid in cash yet so it is = $8000 and

Bond Discount in which $800,000 includes $2,000 of discount amortization that is non cash transaction so it is $2000

so that Cash Paid for Bond Interest is $790,000

correct option is a.$790,000