12. On July 1, 2011, Canine Company signed a two-year $50,000 note payable with 8 percent interest. At due date, July 1, 2013, the principal and interest will be paid in full. Interest expense should be reported on the income statement for the year ended December 31, 2011, in the amount of: (A) $0. (B) $4,000. (C) $2,250. (D) $2,000