13. Perez Corporation borrowed $40,000 from the bank on March 1, 2016. The note carried a 9% annual interest rate and a 1-year term to maturity. The company paid the principal and the interest in cash on the maturity date. What amount of interest expense will Perez Corporation show on its 2016 and 2017 income statements? A. 2016: $0: B. 2016: $3,600; C. 2016: $2,700; D. 2016: $3,000; 14. Madison Company issued an interest-bearing note payable with a face amount of $24,000 and a stated interest rate of 8% to the Metropolitan Bank on September 1, 2016. The note carried a one-year term. Based on this information alone, the amount of total liabilities appearing on Madison's 2016 balance sheet would be: A. $24,640 B. $24,800 2017: $3,600 2017: 50 2017: $900 2017: $600 C. $25,920 D. $24,000