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Jane's Donut Co. borrowed $195,000 on January 1, 2021, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity

Jane's Donut Co. borrowed $195,000 on January 1, 2021, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2023. In connection with this note, Jane's should report interest expense at December 31, 2021, in the amount of:

Multiple Choice

$49,608.

$46,800.

$0.

$23,400.

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