Bjork, Inc. borrowed $150,000 from 1^st Star Bank on July 1, 2016. The loan stipulates that the annual interest rate is 8%, payable on the 15^th of each month, beginning July 15, 2016. Assume Bjork makes all interest payments when they are due. How much will Bjork, Inc. report on its 2016 balance sheet for interest payable?

a. $0

b. $500

c. $6,000

d. $5,500

e. $12,000