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DeKalb Company Made a Loan of $10,000 to One of the Company's

Question 97

Multiple Choice

DeKalb Company made a loan of $10,000 to one of the company's employees on May 1, Year 1. The one-year note carried a 6% rate of interest. The amount of interest revenue that DeKalb would report in Year 1 and Year 2, respectively would be


A) $600, and $0.
B) $0, and $600.
C) $200, and $400.
D) $400, and $200.

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