On Jun 1, 20X5, Ban Co. borrowed on a $1,440 000 note payable from the Federal Bank.

The note bears interest at 11% and is payable in three equal annual principal payments of $480,000. On this date, the bank's prime rate was 12%. The first and second annual payments for interest and principal was made on June 1, 20X6 and June 1, 20X7.

At December 31, 20X7, what amount should Ban report as accrued interest payable?

2.

At April 30, Year 1, a $1,500,000 note payable was included in Cab Corp.'s liability account balances. The note is dated May 1, Year 1, bears interest at 14%, and is payable in three equal annual payments of $500,000. The first interest and principal payment was made on May 1, Year 2. In its November 30, Year 2 balance sheet, what amount should Cab report as accrued interest payable for this note?