2-Dolly's Slacks borrowed $12 million dollars to get cash to expand their clothing line to include pants that had cowboy boots attached. The loan was made on October 1, 2023 by Capital Bank under a short-term line of credit whereby Dolly's Slack had an 8-month note at the banks' 8% stated discount rate. Dolly's fiscal period is the calendar year (December 31) and on their 2023 income statement interest expense for that note should be:

Multiple Choice

$240,000

$360,000

$0

$480,000