James signed a 10 year note payable on January 1, 2016 of 800,000 the note requires annual principal payments each December 31 of 80,000 plus interest at 5%. the entry to record the annual payment on December 31,2017 includes

A : adebit to interest expense for 36,000

B: a debit to interest expense for 40,000

C: a credit to notes payable for 80,000

D: a credit to cash for 120,000