Winrow Company received proceeds of $754,000 on 10-year, 8% bonds issued on January 1, 2019.The bonds had a face value of $800,000, pay interest annually on December 31, and have a call price of 101.Winrow uses the straight-line method of amortization.What is the amount of interest Winrow must pay the bondholders in 2019?
A)$60,320
B)$64,000
C)$68,600
D)$59,400

Question

Quizplus · Accepted Answer

The interest payment is calculated as the face value of the bonds multiplied by the stated interest rate: $800,000 * 8% = $64,000.

Winrow Company Received Proceeds of $754,000 on 10-Year, 8% Bonds