On May 1 Year 1. Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. In addition, Arrow reported cash revenue of $3,400 in Year 1 and $800 in Year 2 from sales. Interest is paid when the note is due. Arrow's net income for Year 1 and Year 2 would be Multiple Choice $2,500/$800 $2,500 / $100 O $2,400 / $800 $2.800 / $500