The following excerpts are from the 2008 20-F filing of B+H Ocean Carriers (NYSE Alternext: BHO ). In its statement of cash flows, the company uses the indirect method to reconcile net income with net cash (used in) provided by operations.

1. The balance in bonds payable was reduced at redemption by:
A. $2,155,000.
B. $2,345,000.
C. $4,500,000.

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Excerpt from Consolidated Statements of Income For the years ended 31 December 2008, 2007, and 2006 2008 Revenues: I Total revenues 1 Total operating expenses Income from vessel operations Other income (expense): I Gain on debt extinguishment 1 Total other income (expense), net Net income 104,908,915 1 100,279,906 4,629,009 1 2,345,000 I 11,236,107 $15,865,116 2007 112,416,831 I 96,140,562 16,276,269 (14,257,092) $2,019,177 2006 I 96,879,051 I 71,018,929 25,860,122 (7,085,809) $18,774,313