On September 1, 2019, Culver Corp

Multiple Choice

On September 1, 2019, Culver Corp. issued a 9% note payable to National Bank for $ 750,000, payable in three equal annual principal payments of $ 250,000, plus interest. On this date, the bank's prime rate was 8%. The first payment for interest and principal was made on September 1, 2020. At December 31, 2020, Culver should record accrued interest payable of

A) $ 13,333.
B) $ 22,500.
C) $ 15,000.
D) $ 10,000.