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Question - Platinum Pictures' liability account balances at June 30, 2016 included a 10 percent note payable. The note is dated October 1, 2014 and carried an original principal amount of P600,000. The note is payable in three annual payments of P200,000 plus interest. The first interest and principal payment was made on October 1, 2015. In Platinum's June 30, 2016 balance sheet, what amount should be accrued for interest for this note?
a. 40,000
b. 20,000
c. 10,000
d. 30,000
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