Perez Corporation borrowed $40,000 from the bank on March 1, 2016. The note carried a 9% annual interest rate and a 1-year term to maturity. The company paid the principal and the interest in cash on the maturity date. What amount of cash paid for interest expense will Perez Corporation show on its 2016 and 2017 statements of cash flows?

A

2016	2017
$ -0-	$3,600

B

2016	2017
$3,600	$ -0-

C

2016	2017
$3,000	$ 600

D

2016	2017
$2,700	$ 900