On June 1, 2008, Watt Corp

On June 1, 2008, Watt Corp. loaned Hall $300,000 on a 12% note, payable in five annual installments of $60,000 beginning January 2, 2009. In connection with this loan, Hall was required to deposit $3,000 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Hall after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2008. Hall made timely payments through November 1, 2008. On January 2, 2009, Watt received payment of the first principal installment plus all interest due. At December 31, 2008, Watt's interest receivable on the loan to Hall should be

A) $0.
B) $3,000.
C) $6,000.
D) $9,000.