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

---

Definitions:

Automobile-To-Automobile Variability

Variation in characteristics or properties observed between different automobiles.

Miles Per Gallon

A measure of fuel efficiency in vehicles, representing the number of miles a vehicle can travel per gallon of fuel.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameters of a model.

Treatments

The conditions or interventions applied to participants in an experimental study.