Medstar Radiology Clinic
Information from the Company's Financial Records Is

Medstar Radiology Clinic
Information from the company's financial records is presented in the following table:
$\begin{array}{lr}\text { Notes payable, December 31, Year 1 } & \$ 1,000,000 \\\text { Notes payable, December 31, Year 2 } & 1,200,000 \\\text { Loss on note retirement - Year 2 } & 45,000 \\\text { Interest expense on bonds - Year 2 } & 75,000\end{array}$ At the end of Year 2, 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 Year 1 (before the maturity date) . All interest expense was paid in cash during Year 2.
-Refer to the figure Medstar Radiology Clinic.How much was paid to retire the $1,000,000 note issue during Year 2?

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