On September 1, 2015, Able Company purchased a building from Regal Corporation by paying $600,000 cash and issuing a one-year note payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 12% and is paid at maturity. In its December 31, 2015, balance sheet, Able correctly presented the note and interest payable as follows:

Interest payable	$22,200
Notes payable, 12%, due September 1, 2016	$555,000

17. Required information

What is the amount of the interest expense Able will recognize on this note in 2016?

A.$66,600. B. $22,200. C. $44,400. D. $38,850.