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:

Cutting Pattern

In manufacturing, the arrangement or plan for how parts will be cut from a material to minimize waste and maximize efficiency.

Cutting Pattern 6

Cutting Pattern 6 refers to a specific layout or plan used in manufacturing or production to optimize material usage and minimize waste when cutting materials.

Solver

A software tool used in optimization that finds the maximum or minimum value of a function subject to constraints.

Integer Models

Mathematical models that involve decision variables restricted to integer values, commonly used in optimization for solving problems in areas such as scheduling and resource allocation.