A business borrows $100,000 from a bank on July 1, 2008. Under the agreement with the bank, the loan must be repaid in full on June 30, 2009, with interest at 6% a year. The business wants to prepare financial statements for the year ended December 31, 2008. How much interest expense should it report for that year?

$3,000

$0

$6,000

$12,000