On September 1, 2015, Able Company purchased a building from Regal Corporation by paying $320,000 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 $12,200 Notes payable, 12%, due September 1, 2016 $305,000