On January $1,$ Year $1,$ Niagara Corporation arranges a $$6,000$ line of credit with Centennial Bank. It accepted the bank's offer of $1\%$ above the prime rate with interest payments on

December $31$ of each year. All borrowings and repayments are to take place on January $1$ of each year.

Niagara begins its loan transactions with Centennial Bank by borrowing $$2,000$ on January $1,$ Year $1.$ Which of the following shows the effect of this event on statements

Multiple Choice

Option A

Option B

Option C