On October 1, 2019, Omicron Company borrowed $32,000 cash and signed a 9-month, 10% interest-bearing note payable with interest payable at maturity. What amount of accrued interest payable should Omicron report on its December 31, 2019 balance sheet?

Multiple Choice

• $800.

• $1,200.

• $400.

• $1,600.

• Zero. No accrued interest payable should be reported on December 31, 2019.