On September 1, 2010, Star Corp

Multiple Choice

On September 1, 2010, Star Corp. issued a note payable to Federal Bank in the amount of $450,000. The note had an interest rate of 12 percent and called for three equal annual principal payments of $150,000. The first payment for interest and principal was made on September 1, 2011. At December 31, 2011, Star should record accrued interest payable of

A) $11,000.
B) $12,000.
C) $16,500.
D) $18,000.