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Mann Corp.s liability account balances at June 30, Year 2, included a 10% note payable in the amount of $3.6 million. The note is dated

Mann Corp.s liability account balances at June 30, Year 2, included a 10% note payable in the amount of $3.6 million. The note is dated October 1, Year 1, and is payable in three equal annual payments of $1.2 million plus interest. The first interest and principal payment was made on October 1, Year 2. In Manns June 30, Year 3, balance sheet, what amount should be reported as accrued interest payable for this note?
A. $60,000
B. $90,000
C. $270,000
D. $180,000

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