On November 1, 2023, Mason Corp. sold $700,000 of its 8% term bonds dated October 1, 2023. The bonds were sold to yield 10%, with total proceeds of $600,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should Mason report for interest payable in its December 31, 2023 balance sheet?

Select one:

a.$17,500

b.$16,000

c.$14,000

d.$10,667

e.$15,000