On November 1, Year 1, Noble Company borrowed $100,000 from South Bank and signed a 6%, six-month note payable, all due at maturity. The interest on this loan is stated separately.

At December 31, Year 1, Noble Company's overall liability for this loan amounts to:

Multiple Choice

• $103,000.

• $101,000.

• $100,000.

• $102,000.

On November 1, Year 1, Noble Company borrowed $104,000 from South Bank and signed a 6%, six-month note payable, all due at maturity. The interest on this loan is stated separately.

How much interest expense will Noble recognize on this note in Year 2?

Multiple Choice

• $3,120.

• $1,560.

• $6,240.

• $2,080.