On July 1, 2011, Icespresso Inc

Multiple Choice

On July 1, 2011, Icespresso Inc. signed a two-year $8,000 note receivable with 9 percent interest. At its due date, July 1, 2013, the principal and interest will be received in full. Interest revenue should be reported on Icepresso's income statement for the year ended December 31, 2011, in the amount of:

A) $1,440.
B) $720.
C) $420.
D) $360.