On September 1 Year3, Boxel borrowed $100,000 on a 6-month, 6% annual interest note payable. Interest and principal are to be paid at maturity. Assuming this is Boxel's only debt during the year, how much interest payable will Boxel report on the balance sheet as of December 31,Year3?

Select one: a. $4,000 b. $3,000 c. $1,000 d. $2,000 e. $6,000