On January 1, 20X1, Winston Corporation Sold a Four-Year, $10,000

On January 1, 20X1, Winston Corporation sold a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,668 based on an 8% effective interest rate. Assuming effective-interest amortization is used, the interest expense on the 20X1 income statement would be which of the following amounts (to the nearest dollar) ?

A) $700
B) $773
C) $883
D) $1,547