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Jane's Donut Co. borrowed $208,000 on January 1, 2016, and signed a two-year note bearing interest at 10%. Interest is payable in full at maturity
| Jane's Donut Co. borrowed $208,000 on January 1, 2016, and signed a two-year note bearing interest at 10%. Interest is payable in full at maturity on January 1, 2018. In connection with this note, Jane's should report interest expense at December 31, 2016, in the amount of: |
a. $0.
B. $41,600.
C. $44,096.
D. $20,800.
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