On September 1, 2014, Lowe Co

Multiple Choice

On September 1, 2014, Lowe Co. issued a note payable to National Bank in the amount of $900,000, bearing interest at 9%, and payable in three equal annual principal payments of $300,000. On this date, the bank's prime rate was 8%. The first payment for interest and principal was made on September 1, 2015. At December 31, 2015, Lowe should record accrued interest payable of

A) $27,000.
B) $24,000.
C) $18,000.
D) $16,000.