Cash received for interest during X1 = $ 6,500. Cash paid for interest during X1 = $ 5,800. Interest payable at 1/1/X1 = $1,250; Interest payable at 12/31/X1 = $ 1,930; Interest receivable at 1/1/X1 = $1,500; Interest receivable at 12/31/X1 = ?; Unearned interest at 1/1/X1 = $2,370; Unearned interest at 12/31/X1 = $ 1,980; Prepaid interest at 1/1/X1 = ?; Prepaid interest at 12/31/X1 = $ 1,200. Interest revenue during X1 = $7,500; Interest expense during X1 = $ 6,800. What is Prepaid interest at 1/1/X1?

• A. $320
• B. $880
• C. $1,520
• D. $1,680
• E. $1,880