Riley Company borrowed $36,000 on April 1, 2016 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,700 in 2016 and $1,400 in 2017. Assume no other transactions.

The amount of total liabilities that would appear on Riley's December 31 balance sheets for 2016 and 2017 would be

(2016, 2017)

A. $36,000 $0

B. $37,890 $0

C. $37,890 $38,520

D. $1,890 $630