q14

John Deere is an American manufacturer of agricultural, construction, and forestry machinery. John Deere issues bonds to raise capital and on January 3.2021. issued a four-year, $10,000.7% bond. The interest is payable annually each December 31. The issue price (carrying value) was 59,668 based on an 8% market interest rate. Based on this information the interest expense on the income statement for the year ended December 31, 2021 is closest to: Multiple Choice $700. $677 $883