Answer:
$9,590
Explanation:
Calculation to determine what The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:
First step is to calculate the Interest paid
Interest paid = 10000*6%
Interest paid= 600
Second step is to calculate the Interest expense
Interest expense = 9,523*7%
Interest expense= 667
Third step is to calculate the Discount amortization
Discount amortization =667-600
Discount amortization = 67
Now let calculate Book value at the end of December 31,2020
Book value at the end of December 31,2020 = 9,523 +67
Book value at the end of December 31,2020 = $9,590
Therefore The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:$9,590
