Baskin issued 700,000 of 8% four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The cash proceeds were $654,758 and the market rate on the issue date was 10%.
Assuming Baskin uses the effective interest method, the carrying value of the bonds at December 31, 2019, is closest to $659,496.