Rex Corporation accepted an $11,000, 5% interest bearing note from Brooks Inc. on December 1 of Year 1 in exchange for machinery with a list sales price of $9,500. The note is payable on December 1 of Year 4. If the prevailing interest rate is 8%, what revenues should Rex report in its income statement for the year ended December 31 of Year 1?

Use Excel or a financial calculator for the computations. Do not round until final answers. Round answers to the nearest dollar.