A state borrowed $$10,000,000$ on a nine$-$month, $9\%$ note payable to provide temporary financing for the

General Fund. At year end, the note has been outstanding for six months. The state should report General

Fund interest expenditures and interest payable on the note in its financial statements in the amount of

A$.,$$$0,$ the interest will be recognized when it matures.

B$.$ $$450,000.$

C$.$ $$450,000$ unless the state does not expect to be able to pay the interest when it matures$-$in which

case no interest expenditures should be reported for the current year.

D$.$ $$675,000.$