Riley Company Borrowed $36,000 on April 1, Year 1 from the Titan

Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,700 in Year 1 and $1,400 in Year 2. Assume no other transactions.The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be:

A) $36,000 and $0.
B) $37,890 and $0.
C) $37,890 and $38,520.
D) $1,890 and $630.