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

question 94

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. What is the amount of interest expense Winrow will show with relation to these bonds for the year ended December 31, 2014?

• A) $48,000
• B) $45,240
• C) $51,450
• D) $44,550

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Definitions:

X-variable

An independent variable in mathematical functions and experiments that can be changed to observe its effect on the outcome.

Y-variable

The dependent variable in an equation or a model, whose value is predicted or explained by other variables.

Units

Basic measures or quantities adopted to quantify and express the count of objects, substance volume, or other phenomena.

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Beverages that are served chilled, often including sodas, iced teas, and various types of juices.