Warren Company Borrowed $20,000 on September 1, 2013 from the National

Multiple Choice

Warren Company borrowed $20,000 on September 1, 2013 from the National Bank. Warren agreed to pay interest annually at the rate of 6% per year. The note issued by Warren carried an 18-month term. Based on this information the amount of interest expense appearing on Warren's 2013 income statement would be

A) $-0-.
B) $400.
C) $120.
D) $300.