Winrow Company Received Proceeds of $565,500 on 10-Year, 8% Bonds

question 250

Multiple Choice

Winrow Company received proceeds of $565,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 101. Winrow uses the straight-line method of amortization. Winrow Company decided to redeem the bonds on January 1, 2015. What amount of gain or loss would Winrow report on its 2015 income statement?

• A) $27,600 gain
• B) $33,600 gain
• C) $33,600 loss
• D) $27,600 loss

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Definitions:

Use of Exchange

Use of exchange refers to the strategic utilizing of resources, information, or services between parties for mutual benefit, often in social or economic transactions.

Use of Praise

The practice of expressing approval, appreciation, or admiration towards someone, often used as a motivational or feedback tool.

Intention to Persuade

The deliberate effort to influence others' beliefs or actions through argument, reasoning, or appeal.

Huckster

A person who sells or advertises something in an aggressive, dishonest, or annoying manner.