Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
Seattle Company issued a $90,000 face value discount note payable to the First Federal Bank on September 1,2016.The note carried a one-year term and a 4% discount rate.
-The amount of interest expense appearing on the 2016 income statement would be:

A) $1,200.
B) $3,600.
C) $2,400.
D) $7,200.