41) Rosewood Company borrowed $16,000 from First Bank on April 1, Year 1. The one-year note carried a 6% rate of interest. What amount of interest expense would Rosewood report on its Year 1 and Year 2 income statements, respectively? A) $720 in Year 1 and $240 in Year 2 B) $0 in Year 1 and $960 in Year 2 C) $240 in Year 1 and $720 in Year 2 D) $960 in Year 1 and $0 in Year 2