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.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