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

question 46

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 carrying value of the bonds on January 1, 2021?

• A)$800,000
• B)$763,200
• C)$790,800
• D)$758,600