Exercise 8-5 (Algo) Determine interest expense (LO8-2) JB Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.7 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be reported in the year-end income statement under each of the following independent assumptions: (Enter your answers in dollars, not millions (i.e. 5.5 million should be entered as 5,500,000).) Interest Rate Fiscal Year-End Interest Expense 1. 11% 2. 9% December 31 September 30 3. 10% October 31 4. 7% January 31