On September 1, 2014, Coffee Ltd.issued a $1,800,000, 12% note to Humungous Bank, payable in three equal annual principal payments of $600,000.On this date, the bank's prime rate was 11%.The first payment for interest and principal was made on September 1, 2015.At December 31, 2015, Coffee should record accrued interest payable of

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The interest for the remaining principal of $1,200,000 (after the first payment of $600,000) at 12% for 4 months (September to December) is $48,000.