On November 1, Jasper Company loaned another company $260,000 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. $6975.
B. $3900.
C. $8300.
D. $20,300.
E. $0.


Answer: B

Business

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