A 4-year, 8%, $40,000 notes payable was issued on January 1, Year 1. The maker is required to pay $10,000 plus interest on December 31 of every year for the next four years. What amount, if any, should be reported as a current liability on January 1, Year 2?

A :

zero; the note is a long-term liability

B :

$13,200

C :

$39,600

D :

$10,000