On November 1, 2024, Mason Corp. sold $700,000 of its 10% term bonds dated October 1, 2024. The bonds were sold to yield 8%, with total proceeds of $800,000 plus accrued interest. Interest is paid every April 1 and October 1.

What amount should Mason report for interest payable in its December 31, 2024 balance sheet?

Select one:

a.

$17,500

b.

$16,000

c.

$11,667

d.

$10,667

e.

$20,000