Rosewood Company made a loan of 16000 to one of the companys

Rosewood Company made a loan of $16,000 to one of the company\'s employees on April 1, 2016. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report in 2016 and 2017, respectively would be:

option D

option C

option A

option B

	2016	2017
A.	$960	$0
B.	$0	960
C.	$240	$720
D.	$720	$240

Solution

Rosewood would report interest revenue of 2016 from April to December 16,000*6%*9/12 720 in 2017 the interest revenue will be reported for three months 16,000*6%*3/12 240 Answer ) option D