On November 1, Jovel Company loaned another company $160,000 at a 9.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:
A. $5975.
B. $7300.
C. $2400.
D. $0.
E. $18,300.
Answer: C
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