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

Multiple Choice

Winrow Company received proceeds of $754,000 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $800,000, 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, 2018?

A) $800,000
B) $763,200
C) $790,800
D) $758,600