Question: On September 1, 2016, Demich Co. issued a note payable to National Bank in the amount of $2, 400,000, bearing interest at 12%, and payable

On September 1, 2016, Demich Co. issued a note payable to National Bank in the amount of $2, 400,000, bearing interest at 12%, and payable in three equal annual principal payments of $800,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal is scheduled for September 1, 2017. At December 31, 2016, Demich should record accrued interest payable of $58,000 $54,000 $64,000 $96,000

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