[The Following Information Applies to the Questions Displayed Below

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, the Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.

-Which of the following correctly shows the effect of the issuance of the note on Platte's financial statements?

A) Option A
B) Option B
C) Option C
D) Option D