In the statement of financial position, mortgage notes payable are reported as

A. a noncurrent liability only.

B. a current liability except for the reduction in principal amount.

C. both a current and a noncurrent liability.

D. a current liability only.

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On January 1, 2022 Ann Price loaned 45,078 to Joe Kiger. Azero-interest-bearing note (face amount, 60,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2024. The prevailing rate of interest for a loan of this type is10%. The present value of 60,000 at 10% for three years is 45,078. What amount of interest income should Ms. Price recognize in 2022?

A.

13,524.

B.

4,508.

C.

6,000.

D.

18,000.