The following information was taken from the 2015 financial statements of Dunlop Corporation: $\begin{array}{lr}
\text { Bonds payable, January 1, 2015 } & \$ 600,000 \
\text { Bonds payable, December 31,2015 } & 3,600,000
\end{array}$ During 2015
$\bullet$A $540,000 payment was made to retire bonds payable with a face amount of $600,000.
$\bullet$Bonds payable with a face amount of $240,000 were issued in exchange for equipment.In its statement of cash flows for the year ended December 31, 2015, what amount should Dunlop report as proceeds from issuance of bonds payable?
A) $3,000,000
B) $3,300,000
C) $3,360,000
D) $3,840,000

Question

Quizplus · Accepted Answer

Dunlop issued bonds payable with a face amount of $240,000 in exchange for equipment. The proceeds from the issuance of bonds payable is $240,000.