Winrow Company Received Proceeds of $754,000 on 10-Year, 8% Bonds

question 126

Multiple Choice

Winrow Company received proceeds of $754,000 on 10-year, 8% bonds issued on January 1, 2019.The bonds had a face value of $800,000, pay interest annually on December 31, and have a call price of 101.Winrow uses the straight-line method of amortization.What is the amount of interest expense Winrow will show with relation to these bonds for the year ended December 31, 2019?

• A)$64,000
• B)$60,320
• C)$68,600
• D)$59,400

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