Fornelli Corporation Borrowed $800,000 from Central Bank on May 31

Multiple Choice

Fornelli Corporation borrowed $800,000 from Central Bank on May 31, 2019.The three-year, 7% note required annual payments of $304,840 beginning May 31, 2020.Interest expense for the year ended December 31, 2019, was

A) $32,667.
B) $37,333.
C) $56,000.
D) $0.