Question: On September 1 , 2 0 0 5 , a company borrowed cash and signed a 2 - year interest - bearing note on which

On September 1,2005, a company borrowed cash and signed a 2-year interest-bearing note on which both the principal and interest are payable on September 1,2007. At December 31,2006, the liability for accrued interest should be
Zero.
For 4 months of interest.
For 12 months of interest.
For 16 months of interest.

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