On March 1, 2010, Forest Co. borrowed cash and signed a 36-month, interest-bearing note on which both the principal and interest are payable on February 28, 2013. At December 31, 2013, the liability for accrued interest should be

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The note was signed on March 1, 2010, and both principal and interest are due on February 28, 2013. By December 31, 2010, 10 months of interest would have accrued, and by December 31, 2011, an additional 12 months would have accrued, totaling 22 months. By December 31, 2012, another 12 months would have accrued, totaling 34 months of accrued interest.