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Question - Vahala Inc's fiscal year ends on December 31, 2005. Vahala provided the following information relating to possible liabilities at December 31, 2005. On September 30, 2005, Vahala Inc. signed a 9-month, 8% note due to Chase Bank with a face amount 0f $300,000 secured by the company's plant assets.
What is the amount of accrued interest payable at December 31, 2005? Please show work.
A. $4,000
B. $6,000
C. $18,000
D. $24,000
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