On March 1, 2015, Fine Co. borrowed $10,000 and signed a two-year note bearing interest at 12% per annum compounded annually. Interest is payable in full at maturity on February 28, 2017. What amount should Fine report as a liability for accrued interest at December 31, 2016?

a. $       0

b. $1,000

c. $1,200

d. $2,320

Answer rating: 100% (QA)

first calculate the accrued interest at the end of yeur one feoruary 282... View the full answer