A one-year, $6,000, 9 percent note payable was signed on November 1, year 1. Which of the following is true?

a. $540 of interest will be paid when the note matures in year

2. b. $90 of interest will be included in accrued liabilities on the December 31, year 1 balance sheet.

c. $450 of interest expense will be reported in the year 2 income statement.

d. All of the above are true

e. None of the above is true.