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

question 147

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 $400,000, pay interest annually on December 31st, and have a call price of 101. Winrow uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2015?

• A) $600,000
• B) $572,400
• C) $593,100
• D) $568,950

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Definitions:

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Individuals who are enrolled in a college or university program leading to an undergraduate or graduate degree.

Level Of Significance

The threshold beyond which the results of a statistical test are considered statistically significant.

P-value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.

Test Statistic

A value calculated from sample data during a hypothesis test to determine whether to reject the null hypothesis.