On March 1, 2018, Everson Services issued a 4% long-term notes payable for $16,000. It is payable over a 4-year term in $4000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2019. Each yearly installment will include both principal repayment of $4000 and interest payment for the preceding one-year period. On March 1, 2019, ________. The accounting period ends on December 31.

Select one:

A.Everson must accrue $4000 of Interest Expense

B.Everson will receive $4000 as an installment payment

C.Everson must accrue the next note payment of $4000 as the current portion of principal payment

D.Everson must pay $640 of interest to the note holder