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Rosewood Company made a loan of $ 8 , 6 0 0 to one of the company's employees on April 1 , Year 1 .

Rosewood Company made a loan of $8,600 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report during the years ending December 31, Year 1 and Year 2, respectively, would be:
Multiple Choice
$0 and $516
$387 and $129.
$129 and $387.
$516 and $0.
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