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, 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 expense Winrow will show with relation to these bonds for the year ended December 31, 2019?

A) $64,000
B) $60,320
C) $68,600
D) $59,400