In its 2006 financial statements, Cris Co. reported interest expense of $85,000 in its income statement and cash paid for interest of $68,000 in its cash flow statement. There was no prepaid interest or interest capitalization either at the beginning or end of 2006. Accrued interest at December 31, 2005, was $15,000. What amount should Cris report as accrued interest payable in its December 31, 2006 balance sheet?

1. $ 2,000

2. $15,000

3. $17,000

4. $32,000