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:

Innovative Solutions

Creative and effective responses or methods developed to solve problems or meet new requirements in a novel way.

Franchising

A business model where a brand owner allows other individuals or entities to operate a business under the brand's name, sharing profits and adhering to established standards.

ICHOR Restaurant Group

A specific entity or brand in the hospitality industry, likely focusing on dining experiences. (Assumed to be a real entity, but NO if not identifiable as a widely recognized term.)

Corporate-Owned Locations

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