Jarvis, Inc. reported net income of $44,000 for the year ended December 31, 2015. Included in net income was a gain on early extinguishment of debt of $60,000 related to bonds payable with a book value of $1,200,000. Each of the following accounts increased during 2015: $$\begin{array} { l l }
\text { Notes receivable } & \$ 45,000 \
\text { Deferred tax liability } & \$ 10,000 \
\text { Treasury stock } & \$ 120,000
\end{array}$$ What is the amount of cash used by financing activities for Jarvis, Inc. for the year ended December 31, 2015?
A) $1,260,000
B) $1,270,000
C) $1,900,000
D) $ 225,000

Question

Jarvis, Inc. reported net income of $44,000 for the year ended December 31, 2015. Included in net income was a gain on early extinguishment of debt of $60,000 related to bonds payable with a book value of $1,200,000. Each of the following accounts increased during 2015: $$\begin{array} { l l } 
\text { Notes receivable } & \$ 45,000 \
\text { Deferred tax liability } & \$ 10,000 \
\text { Treasury stock } & \$ 120,000
\end{array}$$ What is the amount of cash used by financing activities for Jarvis, Inc. for the year ended December 31, 2015?
A) $1,260,000
B) $1,270,000
C) $1,900,000
D) $ 225,000

Quizplus · Accepted Answer

The Answer of Jarvis, Inc. reported net income of $44,000 for the year ended December 31, 2015. Included in net income was a gain on early extinguishment of debt of $60,000 related to bonds payable with a book value of $1,200,000. Each of the following accounts increased during 2015: $$\begin{array} { l l } 
\text { Notes receivable } & \$ 45,000 \
\text { Deferred tax liability } & \$ 10,000 \
\text { Treasury stock } & \$ 120,000
\end{array}$$ What is the amount of cash used by financing activities for Jarvis, Inc. for the year ended December 31, 2015?
A) $1,260,000
B) $1,270,000
C) $1,900,000
D) $ 225,000

Jarvis, Inc What Is the Amount of Cash Used by Financing Activities