On March 1,2016,Emerson Services Issued a 4% Long-Term Notes Payable

On March 1,2016,Emerson Services issued a 4% long-term notes payable for $16,000.It is payable over a 4-year term in $4,000 annual principal payments on March 1 of each year plus interest,beginning March 1,2017.Each yearly installment will include both principal repayment of $4,000 and interest payment for the preceding one-year period.On March 1,2017,________.The accounting period ends on December 31.

A) Emerson must accrue $4,000 of Interest Expense
B) Emerson must accrue the coming $4,000 as the current portion of principal payment
C) Emerson must pay $640 of interest to the note holder
D) Emerson will receive $4,000 as an installment payment