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Rosewood Company Made a Loan of $16,000 to One of the Company's

Question 21

Multiple Choice

Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report during the years ending December 31, Year 1 and Year 2, respectively, would be:


A) $960 and $0
B) $0 and $960
C) $240 and $720
D) $720 and $240

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