If a Governmental Entity Issued a Six-Month, $400,000 Note Payable

Multiple Choice

If a governmental entity issued a six-month, $400,000 note payable at 6% interest three months prior to the fiscal year end to help finance a new fire station, Capital Projects Fund interest payable should be accrued as of the end of the fiscal year in the amount of

A) $0.
B) $6,000.
C) $12,000.
D) $24,000.