Answer:
$600
Explanation:
Calculation to determine How much interest expense will Brokaw report in its 2022 financial statements
Based on the information given they will have to incur two months of interest expense which is January and February since four months went by in 2021 starting from September to December
Now let calculate the interest expense
Interest expense =$40,000 x .09 x 2/12
Interest expense =$600
Therefore the amount of interest expense that Brokaw will report in its 2022 financial statements is $609
$600
