Winrow Company Received Proceeds of $565,500 on 10-Year, 8% Bonds

Multiple Choice

Winrow Company received proceeds of $565,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 101. Winrow uses the straight-line method of amortization. What is the amount of interest expense Winrow will show with relation to these bonds for the year ended December 31, 2014?

A) $48,000
B) $45,240
C) $51,450
D) $44,550