Question: Click to open: On September 1 , 2 0 2 0 , Vernon Co . issued a note payable to Key Bank in the amount

Click to open:
On September 1,2020, Vernon Co. issued a note payable to Key Bank in the amount of $5,400,000, bearing interest at 10%, and payable in three equal annual principal payments of $1,800,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1,2021. At December 31,2021, Vernon should record accrued interest payable of
$198,000.
$396,000.
$120,000.
$180,000.
Click to open: On September 1,2020, Vernon Co. issued a note

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