On January 1,2011,Hays borrowed an additional $1,000 from Barnett Bank,bringing the total amount borrowed to $2,000.On January 1,2012,Hays paid $500 on the principal of the loan.On December 31,2012,Hays records the 2012 interest payment.The prime rate for 2012 was 5 percent.Which of the following answers shows the effect of the 2012 interest payment on the financial statements? 
A) Choice A
B) Choice B
C) Choice C
D) Choice D
Correct Answer:
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