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.What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2,respectively?
A) $960 in Year 1 and $0 in Year 2
B) $0 in Year 1 and $960 in Year 2
C) $240 in Year 1 and $720 in Year 2
D) $720 in Year 1 and $240 in Year 2
Correct Answer:
Verified
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