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Winrow Company received proceeds of $754,000 on 10-year, 8% bonds issued on January 1, 2022 when the effective, or market, rate of interest was 9%.
Winrow Company received proceeds of $754,000 on 10-year, 8% bonds issued on January 1, 2022 when the effective, or market, rate of interest was 9%. The bonds had a face value of $800,000 and pay interest annually on December 31. Winrow uses the effective interest method of calculating interest expense. The interest expense recorded for 2022 will be
$72,000
$64,000
$67,860
$60,320
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