Carlita began 2014 with an interest payable account balance of $13,000. During 2014, it paid $5,000 in interest to its lenders. On December 31, 2014, its interest payable account balance is:

• $15,000
• $10,000
• $13,000
• Cannot be calculated

Carlita Company Income Statement for Year Ending December 31.2014 Sales.. $120,000 Less: Cost of Goods Sold. 90,000 Gross Margin...... $30,000 Less: Operating Expenses... 10,000 Operating Income.. $20,000 Less: Interest Expense. 2,000 Income Before Taxes.. $18,000 Less: Tax Expense...... 6,000 Net Income..... $12,000