The discount on a bond payable becomes

A. a reduction in interest expense the year the bonds mature.
B. a liability in the year the bonds are sold.
C. a reduction in interest expense over the life of the bonds.
D. additional interest expense the year the bonds are sold.
E. additional interest expense over the life of the bonds.

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?