On January 1, 2010, the Long Company Signed a Six-Month

Multiple Choice

On January 1, 2010, the Long Company signed a six-month, non-interest-bearing note payable for $160, 000 and received $152, 800 from Friendly Bank.On January 31, 2010, what amount should Long record for interest expense, and what is the net carrying value of the note?

A) $1, 200; $151, 600
B) $ 0; $160, 000
C) $7, 200; $160, 000
D) $1, 200; $154, 000