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.Winrow Company decided to redeem the bonds on January 1, 2021.What amount of gain or loss would Winrow report on its 2021 income statement?
A)$36,800 gain
B)$44,800 gain
C)$44,800 loss
D)$36,800 loss

Question

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The Answer of 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.Winrow Company decided to redeem the bonds on January 1, 2021.What amount of gain or loss would Winrow report on its 2021 income statement?
A)$36,800 gain
B)$44,800 gain
C)$44,800 loss
D)$36,800 loss

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